Tesla Inc. is facing a proposed class action lawsuit filed by investors over the company’s Robotaxi claims. The lawsuit accuses Tesla and CEO Elon Musk of securities fraud, alleging the company concealed significant risks associated with its Robotaxi program.
Tesla Robotaxis Are Dangerous, Plaintiffs Allege
Plaintiffs claim that Tesla’s Austin Robotaxi launch in June showcased that the vehicle had instances of:
- Speeding
- Driving over a curb
- Driving in the wrong lane
- Dropping off passengers in the middle of the road
These incidents raise concerns about the safety and reliability of Tesla’s Robotaxi program.
Elon Musk Reacts To The News
Musk reacted to the news, sharing his thoughts on the lawsuit on social media. He stated that “it’s never actually investors” who file these lawsuits, but rather “shitty class-action lawyers grifting for their percentage of the verdict.” Musk also referred to these lawyers as “scum of the Earth” and “the worst human being I’ve ever encountered.”
Tesla’s $243 Million Payment, Tougher Oversight
The news comes as Tesla was recently ordered to pay $243 million in damages after failing to dismiss a lawsuit over a fatal crash in Florida. This incident has raised questions about the company’s Full Self-Driving (FSD) system, which could face increased scrutiny from regulators. President Donald Trump’s nominee for the NHTSA administrator, Jonathan Morrison, has called for tougher oversight on autonomous vehicles.
Musk’s Ambitious Robotaxi Plan
Despite the criticism, Musk has targeted an ambitious goal of serving over half the population of the U.S. with Tesla Robotaxis by the end of the year. Tesla has also expanded its ride-hailing service in the San Francisco Bay Area. However, experts have criticized the plans, with Gerber Kawasaki’s co-founder Ross Gerber slamming Tesla for calling its ride-hailing service the “Robotaxi.” Gerber also referred to the term “Supervised Full Self-Driving” as “an oxymoron.”
Conclusion
Tesla’s Robotaxi program has faced criticism and scrutiny from investors, regulators, and experts. The company’s ambitious plans for autonomous vehicles have been overshadowed by concerns about safety and reliability. As the lawsuit against Tesla and Elon Musk proceeds, the company will face increased pressure to address these concerns and demonstrate the viability of its Robotaxi program.