Tesla Inc. (NASDAQ:TSLA) is facing a proposed class action lawsuit filed by investors over the company's Robotaxi claims.
Tesla Robotaxis Are Dangerous, Plaintiffs Allege
A new lawsuit accuses Tesla and CEO Elon Musk of securities fraud, alleging the company concealed significant risks associated with its Robotaxi program, Reuters reported Tuesday.
Plaintiffs say 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, as well as dropping off passengers in the middle of the road, the report suggests.
Elon Musk Reacts To The News
Musk reacted to the news, sharing his thoughts on the lawsuit in a reply to a post on social media platform X, which he owns, on Tuesday. "It's never actually investors," Musk said in the post.
Musk then slammed the "class action lawyers," alleging that they were "grifting for their percentage of the verdict," before delivering some harsh words for the lawyers.
Tesla's $243 Million Payment, Tougher Oversight
The news comes as Tesla was recently ordered by the court to pay $243 million in damages after failing to dismiss a lawsuit over 2019's fatal crash in Florida that resulted in the death of a woman when a Tesla on Autopilot crashed into a parked SUV.
The payment raises questions over the company's FSD or Full Self-Driving system, which could face increased scrutiny after President Donald Trump's nominee for the NHTSA administrator, Jonathan Morrison, called for tougher oversight on autonomous vehicles.
Musk's Ambitious Robotaxi Plan
Amid this, Musk had targeted an ambitious goal of serving over half the population of the U.S. with Tesla Robotaxis by the end of the year. Tesla recently also expanded its ride-hailing service in the San Francisco Bay Area.
However, the plans have faced criticism from experts, including Gerber Kawasaki's co-founder Ross Gerber, who slammed the EV giant for calling its ride-hailing service the "Robotaxi."
"Tesla should consider calling things by the right names. Not wild exaggerations," Gerber said. He also added that the term "Supervised Full Self-Driving" was "an oxymoron."
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