Tesla Sued Over Robotaxi Safety Claims After Public Test Failures

A shareholder lawsuit targets Tesla and its CEO Elon Musk because they allegedly failed to disclose safety issues in their self-driving technology which includes Robotaxi service.

The federal court in Austin Texas received a class action lawsuit after Tesla initiated its first public Robotaxi test in late June which revealed vehicles speeding and abrupt braking and wrong lane entries and dangerous drop-off locations.

The stock price of Tesla dropped 6.1% during the two-day period following the test initiation. The plaintiffs claim Tesla made false statements about autonomous driving capabilities while also exaggerating growth potential and deceiving investors. The lawsuit protects investors who bought Tesla shares between April 19, 2023, and June 22, 2025 and demands unspecified monetary compensation.

Musk depends on autonomous technology to achieve his long-term growth strategy because electric vehicle demand continues to decline. The combination of safety issues and federal investigations and recent court verdicts makes it difficult for Tesla to obtain necessary regulatory approval for expanding its robotaxi operations.

The company has not issued any statement regarding this lawsuit. The lawsuit creates additional legal and operational challenges for the company because it works to bring its self-driving systems to market in a competitive sector under increasing scrutiny.