BREAKING: Elon Musk & Tesla Sued Over Self-Driving Tech Promises

Tesla and its pioneering self-driving features, including Autopilot, Full Self-Driving (FSD),and the highly anticipated Robotaxi services, are currently at the center of multiple significant legal challenges. These lawsuits span various jurisdictions and allegations, highlighting increasing scrutiny over the safety and capabilities of the company's advanced driver-assistance systems.
A notable class action lawsuit has recently been filed in the U.S. District Court for the Western District of Texasa gainst both Tesla and its CEO,Elon Musk. Led by Tesla shareholder Denise Morand from Austin, Texas, the suit accuses the company and its leader of securities fraud. Specifically, the plaintiffs allege that Tesla concealed crucial testing data that indicated its self-driving capabilities were overstated and potentially dangerous. The lawsuit seeks damages for Morand and other shareholders who held Tesla stock between April 19, 2023, and June 22, 2025.

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This shareholder action follows closely on the heels of other legal troubles for the automaker regarding its autonomous technology. In Florida, a jury recently determined that Tesla was at least 33 percent responsible for a fatal accident. This incident resulted in the death of a 22-year-old woman and injuries to her boyfriend, neither of whom were occupants of the Tesla vehicle involved in the crash. The court ordered Tesla to pay $243 million in damages to the victims. Despite the verdict, Tesla continues to attribute fault to the driver of its vehicle and has indicated its intent to appeal the decision.

Photo Credit: Maty Recio
Furthermore, Tesla is engaged in an ongoing legal battle in California with the state'sDepartment of Motor Vehicles (DMV). This suit, which commenced in late July, centers on allegations that Tesla misleadingly advertised the capabilities of its Autopilot and Full Self-Driving technologies to consumers. The California DMV is pursuing severe penalties, including a potential 30-day suspension of Tesla’s license to sell vehicles within the state and possible restitution for affected vehicle owners. These collective legal actions underscore a challenging period for Tesla as it navigates both regulatory oversight and public confidence in its autonomous vehicle ambitions.
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