Tesla, Musk Sued by Shareholders Over Robotaxi Safety Risks

Tesla Inc. and Chief Executive Officer Elon Musk were hit with a proposed shareholder class action filed late Monday in federal court in Austin, Texas, alleging securities fraud tied to the company’s self-driving technology and planned Robotaxi service. Investors say Tesla concealed “significant” safety risks that became evident during the first public Robotaxi test in late June, when vehicles were reported speeding, braking abruptly, mounting a curb, entering the wrong lane and leaving passengers in the middle of multilane roads. Tesla’s stock fell 6.1% in the two trading sessions after the test. The suit seeks unspecified damages for shareholders who bought Tesla shares between 19 April 2023 and 22 June 2025, contending the company and Musk overstated the capabilities of Autopilot and related systems, inflating Tesla’s valuation. Tesla has not responded to the allegations.