Tesla is currently facing multiple legal challenges, including class action lawsuits, related to failures and alleged misrepresentations of its Autopilot and Full Self-Driving (FSD) systems. These lawsuits claim that Tesla’s driver-assist technologies have not performed as safely or reliably as promised, leading to accidents, injuries, and even fatalities.
One significant development is a recent class action lawsuit filed against Tesla and some of its executives, alleging violations of federal securities laws. This lawsuit, filed in Texas, represents investors who purchased Tesla stock between April 2023 and June 2025. The plaintiffs argue that Tesla misled shareholders about the safety and reliability of its Autopilot and FSD systems, which contributed to a decline in Tesla’s stock price after reports of crashes and regulatory scrutiny became public. This case seeks damages for investors who suffered losses due to these alleged misrepresentations.
In addition to investor lawsuits, there are class actions and individual lawsuits from Tesla vehicle owners and accident victims. For example, a class action by California Tesla owners claims that Tesla misled consumers about the capabilities of its Full Self-Driving system. Plaintiffs argue that Tesla’s marketing and naming of these systems create unrealistic expectations, causing drivers to over-rely on the technology and leading to dangerous situations.
The legal scrutiny intensified after a Miami jury held Tesla partially liable for a fatal crash involving Autopilot in 2019, awarding $329 million in damages to the victim’s family and an injured survivor. Tesla defended itself by stating that Autopilot is a driver assistance feature, not a fully autonomous system, and that the driver’s distraction was the primary cause of the crash. However, this verdict highlights how courts are increasingly willing to hold Tesla accountable for the real-world consequences of its Autopilot system’s failures.
Regulatory agencies like the National Highway Traffic Safety Administration (NHTSA) have also opened formal investigations and audits into Tesla’s crash reporting practices and the safety of its Autopilot and FSD systems. These investigations revealed that Tesla sometimes delayed filing crash reports involving Autopilot by months, instead of within the required few days. NHTSA has issued recalls targeting Tesla’s Autosteer feature due to persistent issues such as missed stationary hazards, late braking, and lane-keeping errors, even after Tesla implemented software updates intended to fix these problems.
The core issues driving these lawsuits and investigations include:
– **Over-reliance on Autopilot and FSD:** Drivers may trust the systems too much
