Tesla Inc. and its CEO, Elon Musk, are facing a class-action lawsuit from shareholders who allege the company failed to disclose material safety risks associated with its autonomous vehicle technology, specifically its self-driving cars and Robotaxi platform.
The lawsuit, filed late Monday, August 4, 2025, in federal court in Austin, Texas, accuses Tesla of securities fraud, claiming the company knowingly misled investors about the capabilities and reliability of its autonomous driving systems. Shareholders contend that Tesla downplayed significant dangers while inflating both its business outlook and share value.
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The legal action follows Tesla’s first public Robotaxi test in late June, which drew widespread criticism after the vehicles reportedly displayed multiple performance issues. These included speeding, abrupt braking, mounting curbs, veering into incorrect lanes, and dropping passengers in the middle of busy multi-lane roads.
According to the complaint:
Shareholders “accused them of securities fraud for concealing the significant risk that the company’s self-driving vehicles, including the Robotaxi, were dangerous.”
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Following the public demonstration, Tesla’s stock declined by 6.1% across two trading sessions — a drop shareholders argue was directly tied to the underperformance and safety concerns highlighted during the test.
The lawsuit seeks unspecified damages on behalf of investors who purchased Tesla shares between April 19, 2023, and June 22, 2025 — the period during which they allege the company made misleading statements about its self-driving technology.
As of Tuesday, Tesla has not issued a public response to the allegations.
