The autonomous driving and robotaxis from Tesla continue to generate buzz, and now a group of shareholders from the American electric vehicle company has sued CEO Elon Musk and Tesla for securities fraud for hiding the significant risks of autonomous vehicles.
The proposed class action was filed on Monday in federal court in Austin, Texas, after the first public test of Tesla’s robotaxis at the end of June showed that the autonomous vehicles recorded several violations of traffic rules and sudden braking.
The price of Tesla’s shares fell 6.1% in two sessions following the start of the tests. In this regard, shareholders accused the electric vehicle manufacturer of exaggerating the effectiveness of its autonomous driving technology, inflating its business prospects and the stock price.
