Tesla shareholders sue Elon Musk for allegedly hyping up faltering Robotaxi

Tesla shareholders have filed a class-action lawsuit against the company and its CEO, Elon Musk, alleging securities fraud and the concealment of significant risks posed by Tesla's self-driving vehicles, known as Robotaxi. The lawsuit comes after Tesla's first public test of its Robotaxi service near its headquarters in Austin, Texas, in late June. The test revealed issues with the vehicles, including speeding, sudden braking, driving over curbs, entering the wrong lane, and dropping off passengers in the middle of multilane roads. The National Highway Traffic Safety Administration (NHTSA) is currently investigating the Robotaxi's pilot test. The shareholders argue that Musk and Tesla have been hyping up the Robotaxi technology and downplaying the risks, leading to artificially inflated stock prices. The lawsuit seeks to hold the defendants accountable for their alleged misconduct and the resulting financial harm to investors.