Shareholders File Lawsuit Against Tesla and Elon Musk Accusing Them of Fraud and Exaggerated Robotaxi Capabilities: TDS Lawsuit
Elon Musk and Tesla face a class-action securities fraud lawsuit over safety concerns with their Robotaxi self-driving technology. The lawsuit, filed in federal court in Austin, Texas, accuses the company of concealing risks and overstating the readiness of its autonomous driving capabilities. The suit cites multiple driving failures during a public test in June 2025, including speeding, abrupt braking, curb strikes, and unsafe passenger drop-offs. The case also names current and former Chief Financial Officers as defendants. Following the allegations, Tesla's stock declined about 6.1% over two trading days. As of early August, Tesla had not publicly responded to the suit [1][2].
In other news, Lucid trimmed its 2025 production forecast, Willow Springs International Raceway announced its relaunch event for October 11, and the 600,000th Mercedes-Benz G-Wagen with EQ Technology was produced. Rivian reported a Q2 net loss of $1.1 billion, the Genesis Electrified G80 luxury sedan is no longer in production, and both Rivian and Lucid warned of a bumpy road ahead due to current administration's policy changes.
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[1] The Verge - Tesla faces class-action lawsuit over self-driving tech
[2] Reuters - Tesla shares fall on report of federal securities fraud lawsuit
- The automotive industry is abuzz as Elon Musk and Tesla battle a class-action securities fraud lawsuit over safety concerns with their Robotaxi self-driving technology, an allegation that potentially questions the credibility of the autonomous driving capabilities in the sector.
- Despite the controversy, other tech-centric automotive news abounds, such as Lucid trimming its 2025 production forecast and the production of the 600,000th Mercedes-Benz G-Wagen with EQ Technology.
- Another point of interest is the current administration's policy changes affecting electric-vehicle manufacturers like Rivian and Lucid, both of which have warned of a bumpy road ahead.
- While the finance sector closely monitors the ongoing lawsuit against Tesla, lifestyle enthusiasts may look forward to events like Willow Springs International Raceway's relaunch in October, all contributing to the rich tapestry of transportation and technology in cars today.
