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4d ago

Tesla Appeals $243 Million Autopilot Verdict and Battles Shareholders’ Robotaxi Suit

Legal challenges over Autopilot safety followed by shareholder allegations of investor fraud are testing Tesla’s robotaxi ambitions under federal and state scrutiny.

A Tesla Robotaxi on the streets in Austin. The service launched in limited form on June 22, 2025.
A Tesla robotaxi drives on the street along South Congress Avenue in Austin, Texas, U.S., June 22, 2025. REUTERS/Joel Angel Juarez//File Photo
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Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photo

Overview

  • Tesla has appealed a Florida jury’s $243 million verdict that found its Autopilot driver-assistance software defective in a 2019 fatal crash, arguing the system has since been updated.
  • A class action filed August 4 accuses Tesla and CEO Elon Musk of securities fraud for allegedly misrepresenting the safety and readiness of its Austin robotaxi service.
  • Videos from June’s pilot show Model Y robotaxis speeding, veering into oncoming lanes, braking abruptly and dropping passengers unsafely, triggering an NHTSA safety defect investigation.
  • Tesla’s share price fell about 6 percent on June 24–25 after reports of erratic robotaxi behavior and the NHTSA probe, stoking investor concern over its autonomy roadmap.
  • The company is awaiting regulatory approvals in California, Nevada, Arizona and Florida while navigating overlapping federal investigations and state certification reviews for its full self-driving rollout.