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Tesla Hit by Shareholder Lawsuit and Safety Probe as Robotaxi Pilot Falters

Shareholders allege Tesla concealed critical safety flaws revealed by a limited camera-only pilot in Austin.

Lyft and Uber brand logos are in the dashboard of cars when the New York Taxi Workers Alliance (NYTWA) Uber and Lyft hold a work stoppage at a lot near LaGuardia airport on Sunday, February 26, 2023 in New York City. The strike kicked off with a rally and speak-out at the LaGuardia Uber/Lyft cell phone lot followed by picket lines throughout the airport. Photo by John Angelillo/UPI Photo via Newscom picture alliance
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Overview

  • A class-action lawsuit filed Aug. 5 in Austin’s federal court accuses Tesla and Elon Musk of withholding significant safety risks associated with the Robotaxi program
  • June pilot runs exposed serious flaws, including traffic-law violations, curb-riding, abrupt braking, lane departures and mid-road passenger drop-offs
  • NHTSA data record 3,979 automated-driving incidents from June 2021 to June 2024—2,146 involving Tesla vehicles and 83 resulting in serious injury or death—spurring a federal safety investigation
  • Tesla’s Robotaxi service remains confined to a small, weather-dependent zone in Austin with a human safety driver required at all times
  • Competitors Waymo and Baidu are expanding fully driverless fleets with hundreds of thousands of weekly rides, while Uber and Lyft leverage asset-light partnerships to distribute autonomous vehicles