Tesla, Musk sued by shareholders over Robotaxi claims

The electric vehicle maker is accused of overstating the effectiveness of its autonomous driving technology

Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, Mar 22, 2022. Patrick Pleul/Pool via REUTERS

Elon Musk and Tesla were sued by shareholders who accused them of securities fraud for concealing the significant risk that the company's self-driving vehicles, including the Robotaxi, were dangerous.

The proposed class action was filed on Monday night in Austin, Texas, federal court, after Tesla's first public test of its robotaxis in late June showed them speeding, exhibiting sudden braking, driving over a curb, entering the wrong lane, and dropping passengers off in the middle of multilane roads.

Tesla's share price fell 6.1 percent over two trading days after the test began. Shareholders accused the electric vehicle maker of overstating the effectiveness of its autonomous driving technology, inflating its business prospects and stock price.

The lawsuit seeks unspecified damages for shareholders between Apr 19, 2023 and Jun 22, 2025.

Tesla did not immediately respond on Tuesday to a request for comment.