Tesla Investor Sues Over Robotaxi Safety Reports Post Launch (1)

Aug. 5, 2025, 12:49 PM UTCUpdated: Aug. 5, 2025, 2:12 PM UTC

Tesla Inc. and CEO Elon Musk overstated the effectiveness of its autonomous driving technology ahead of launching its Robotaxi service, an investor lawsuit said.

The electric vehicle maker’s stock price fell almost 6.1% across two trading sessions to close at $327.55 per share on June 25 after news reports questioned the driverless taxis’ safety and compliance following the service’s debut. Tesla launched its long-awaited Robotaxi service with a small number of cars in Austin, Texas, on June 22. In the following days, Bloomberg and others news outlets reported on alleged traffic violations from the launch catching the attention of the ...

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