Investors file lawsuits against Tesla and Elon Musk, alleging deception in the development of self-driving taxi technology.
In a significant development, Pomerantz LLP has filed a class action lawsuit against Tesla, Inc. and certain officers, including Elon Musk, alleging that the company made materially false and misleading statements about its autonomous driving technology. The lawsuit, filed in Texas, where Tesla is headquartered, covers securities purchased between April 19, 2023, and June 22, 2025.
The key allegations in the lawsuit revolve around the safety and capabilities of Tesla's Robotaxi service. The lawsuit claims that Tesla and its executives overstated the readiness and safety of the autonomous driving features, including the Robotaxi, which were touted as safe and reliable but were allegedly shown to violate traffic laws in public.
The misleading claims led to dangerous vehicle operation risks and potential traffic violations, undermining investor trust and affecting Tesla’s stock price negatively after media reports and regulatory investigations surfaced. Following the Robotaxi launch event on June 22, 2025, multiple media outlets released videos showing Tesla’s robotaxis breaking traffic laws, prompting an investigation by the U.S. National Highway Traffic Safety Administration (NHTSA), which compounded the issues leading to a stock price drop of $21.13 per share over two trading sessions.
Additionally, a jury ruling on August 1, 2025, found Tesla partly liable for a fatal 2019 Autopilot crash, ordering compensation to affected parties, which relates to ongoing safety concerns surrounding Tesla's autonomous technology.
The lawsuit is filed under federal securities laws, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5, accusing Tesla and its officers of securities fraud through these misleading statements.
This lawsuit is the latest in a series of legal challenges faced by Tesla over its autonomous driving technology. Tesla began a limited test service of robotaxis in Austin at the end of June. Among the documented incidents are cases of vehicles driving in the wrong direction and exceeding speed limits. Pomerantz alleges that the robotaxis have significant safety flaws that can put passengers and the public at risk.
The lawsuit could potentially impact Tesla's stock price and reputation, as it raises questions about the accuracy of the company's claims regarding its autonomous driving technology. The lawsuit was filed against Tesla, the manufacturer, and its CEO Elon Musk. It was filed on behalf of shareholders who suffered damages as a result of the alleged misrepresentations.
[1] https://www.pomerantzlaw.com/news-and-press-releases/tesla-inc-and-elon-musk-accused-of-fraud-in-class-action-lawsuit-for-materially-false-and-misleading-statements-regarding-the-safety-and-capabilities-of-teslas-autonomous-driving-technology-and-robotaxis-tesla-stock-plunges-following-media-reports-and-regulatory-investigations-lawsuit-alleges-1
[2] https://www.sec.gov/news/press-release/2023-119-nr-sec-files-lawsuit-against-tesla-and-elon-musk-alleging-securities-fraud
[3] https://www.nytimes.com/2025/06/25/business/tesla-robotaxi-lawsuit.html
- Despite the launch of Tesla's Robotaxi service in Austin, Pomerantz alleges that the autonomous technology has significant safety flaws, raising concerns about the accuracy of Tesla's claims in the sports and technology sector.
- The technology-driven Robotaxi service of Tesla, touted as safe and reliable, is at the center of the recently filed class action lawsuit, with allegations of violating traffic laws in public and misleading investors about the readiness and safety of autonomous driving features.
