Tesla and CEO Elon Musk are facing a new class-action lawsuit filed by shareholders who allege the company misled investors about the readiness and safety of its autonomous driving technology, particularly its newly launched Robotaxi service.
The lawsuite was filed on August 4, 2025, in federal court in Austin, Texas, and claims that Tesla failed to disclose key risks associated with its self-driving vehicles. The suit centers on Tesla’s June 22 public debut of its Robotaxi fleet in Austin, which purportedly demonstrated erratic driving behavior.
According to the plaintiffs, these incidents undermined Tesla’s assurances of a “scalable and safe deployment.” (via Reuters)
The lead plaintiff, Tesla shareholder Denise Morand, is seeking damages on behalf of investors who bought stock between April 19, 2023, and June 22, 2025—a period during which Tesla made several high-profile statements about the promise and safety of its autonomous technology. Notably, during an April earnings call, Musk said Tesla was “laser-focused” on bringing the Robotaxi to Austin in June, while Tesla’s official communications touted the scalability of its approach to autonomous driving.
The lawsuit names not only Musk and Tesla, but also former CFO Zachary Kirkhorn and current CFO Vaibhav Taneja. Tesla has not yet issued a public response to the legal action.
The shareholder lawsuit comes on the heels of a separate legal setback for Tesla. On August 1, a federal jury in Florida awarded $329 million in damages in a case involving a fatal 2019 crash with a Tesla vehicle operating on Autopilot. The jury found Tesla partially liable and responsible for $242.5 million in combined punitive and compensatory damages. Tesla has said it will appeal that ruling.
