Tesla Shareholders Sue Elon Musk Over Autopilot & FSD Failures - CleanTechnica

Several Tesla shareholders have filed a class action lawsuit against Tesla and Elon Musk, alleging that the company repeatedly overstated the capabilities and readiness of its autonomous driving technology, including the Full Self Driving (FSD) system and Robotaxi service. The suit, filed in federal court in Texas on August 4, 2025, claims these exaggerations were intended to inflate Tesla’s stock price, constituting a "pump and dump" fraud scheme. The lawsuit also names former CFO Zachary Kirkhorn and current CFO Vaibhav Taneja as defendants, accusing Tesla of misleading investors and failing to disclose significant risks and operational problems with its autonomous vehicles. The controversy intensified following the launch of Tesla’s Robotaxi service in Austin, Texas, where the vehicles demonstrated unsafe behaviors such as driving in oncoming traffic lanes and dropping passengers in hazardous locations, despite having human safety drivers onboard. Elon Musk had previously asserted that Tesla’s autonomous system could operate safely even in unmapped areas, contrasting with competitors like Uber and