Shareholders Accuse Tesla and Elon Musk of Fraud Following Robotaxi Test Failures

A group of Tesla shareholders has filed a lawsuit against the company and its CEO Elon Musk, accusing them of concealing the risks associated with autonomous taxi production and committing securities fraud, according to Reuters. This legal action was prompted by the failure of Tesla’s Robotaxi trials in Austin, Texas.

According to Reuters, during the test runs, the autonomous taxi exhibited erratic behavior: the vehicle exceeded speed limits, engaged in unpredictable emergency braking, drove onto curbs and into oncoming traffic, and dropped off passengers in the middle of busy roads.

Two days after the trials began, Tesla’s stock price fell by 6.1%, leading to a market valuation decline of $68 billion. In light of this, shareholders have accused Musk of consistently overstating the capabilities of Tesla’s autonomous technologies, which allegedly contributed to inflated expectations and an unreasonable rise in the company’s stock value.

Denise Moran is identified as the lead plaintiff in this case, seeking damages for herself and other Tesla shareholders incurred between April 19, 2023, and June 22, 2025.

It is worth noting that just a few days prior, a jury in Miami ordered Tesla to pay $243 million for a fatal accident involving the autopilot system of a Tesla Model S.