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A lawsuit against Tesla: What Elon Musk promised but didn't deliver
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  • A lawsuit against Tesla: What Elon Musk promised but didn't deliver

A lawsuit against Tesla: What Elon Musk promised but didn't deliver

FP News Desk • August 6, 2025, 12:38:17 IST
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A Tesla shareholder has sued the company and Elon Musk for securities fraud, alleging misleading claims about its robotaxi technology. The lawsuit says Musk’s promises overstated safety and downplayed regulatory hurdles.

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A lawsuit against Tesla: What Elon Musk promised but didn't deliver
A lawsuit against Tesla: What Elon Musk promised but didn't deliver. Image Credit: Reuters

A Tesla shareholder has filed a lawsuit in Texas, accusing the electric vehicle giant and its CEO Elon Musk of securities fraud, The Information has reported.

The lawsuit claims that Tesla and Musk made “false and misleading statements” about the safety of their robotaxis and downplayed the level of regulatory scrutiny involved in deploying autonomous vehicles.

Tesla launched its robotaxi service in Austin on June 22, but the vehicles still require a human safety monitor in the passenger seat and are confined to a small, geofenced part of the city.

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Musk’s past promises under the scanner

The 31-page complaint, filed late Monday, outlines several public statements made by Musk, arguing they were overly optimistic, misleading, and ultimately deceptive to shareholders.

In 2023, Musk said, “The trend is very clearly towards full self-driving, towards full autonomy. And I hesitate to say this, but I think we’ll do it this year.” However, Tesla has yet to deliver a fully autonomous system that doesn’t require human supervision.

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In 2024, Musk called Tesla’s software a “generalised solution,” contrasting it with Waymo’s “very localised” approach. The lawsuit claims this misrepresented the competitive landscape, as Waymo now operates fully driverless robotaxi services in five US cities, including Austin and Los Angeles.

In January 2025, Musk made his boldest claim yet, saying Tesla would launch “unsupervised Full Self Driving as a paid service in Austin in June,” with “no one in the car.” That launch has not materialised. Tesla’s current robotaxi operations in Austin and San Francisco still depend on human supervisors.

Waymo pulls ahead

While Tesla has struggled to meet its timelines, Waymo has surged ahead. The Google-backed company now offers driverless rides– without safety drivers– in multiple cities, outpacing Tesla in the autonomous vehicle race.

Erratic robotaxi behaviour raises safety concerns

Despite Tesla’s safety claims, several videos posted online show its robotaxis behaving unpredictably in Austin. The lawsuit cites a June 23 Bloomberg article titled “Tesla Robotaxi Videos Show Speeding, Driving Into Wrong Lane,” claiming the vehicles were violating traffic laws from the very first day.

Another article, “Tesla Robotaxi Incidents Draw Scrutiny From US Safety Agency,” reports that the National Highway Traffic Safety Administration (NHTSA) contacted Tesla after videos on social media raised safety concerns. The lawsuit notes that news of these incidents contributed to a decline in Tesla’s stock price.

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