Tesla’s Full Self-Driving (FSD) and Autopilot features—two sides of the same coin—are under even more stress these days. There’s the shiny version Tesla advertises for consumers, and then there’s the stark reality that shone through in a recent court case.
Back in March, CEO Elon Musk tweeted about his experience with the FSD beta, stating it drives autonomously without human interventions. He claimed the upcoming version would represent a major advancement in AI capabilities, expressing that this fact wasn’t widely known.
Related: $243 million Tesla Autopilot lawsuit lawyer’s words for Elon Musk
However, in court, the narrative shifted significantly.
Brett Schreiber, a lawyer representing plaintiffs in a $243 million lawsuit related to a 2019 fatal incident in Key Largo, Florida stated, “In showrooms, Tesla makes it sound like they’ve created the best completely autonomous car out there, insisting it’s fully self-driving hardware. Unfortunately, these claims have always been misleading, just like they remain today.” He described Tesla’s behavior in the courtroom as switching gears to differentiated reality. “In court, they say, ‘Oh no, that’s only a driver assistance feature.’”
Tesla Investors Losing Patience with Robotaxi Hype
Recently, a group of frustrated Tesla investors filed a lawsuit against the company and Musk, underscoring concerns that Tesla was rather sketchy about its Robotaxi plans.
This class action is aimed at shareholders who purchased Tesla stock between April 19, 2023, and June 22, 2025, and seeks compensation over unkept promises.
The lawsuit claims that “Tesla oversold its autonomous driving technology’s effectiveness, posing significant risks that their self-driving vehicles, including the Robotaxi, could be potentially hazardous or break traffic rules.”
Related: GM’s tech chief offers a unique perspective on AI
This glaring disparity between Tesla’s bullish promises and the on-ground reality is leading to more lawsuits and calls for increased regulatory actions.
This week, the National Highway Traffic Safety Administration (NHTSA) piled on more regulatory challenges for Tesla. Although they’ve already been looking into Tesla’s driver assistance systems, they announced another investigation on August 21.
The focus of this latest probe? The speediness and accuracy of Tesla’s crash reporting concerning FSD and Autopilot.
According to a report by Electrek, the Office of Defects Investigation has taken note of delayed incident reports from Tesla that reflect crashes occurring months before they were officially reported.
The NHTSA’s notice explains that this inquiry is a standard operation process for assessing legal compliance, while Tesla claims the delay was due to data collection issues—which they argue has already been rectified.
However, Electrek noted that Tesla had crashing data from the Key Largo incident almost instantly post-accident, making it a crucial point during the trial given that the Tesla system appeared to obliterate local records of the crash while uploading the event to company servers.
Tesla Shareholders Turn to Social Media for Evidence
In a unique turn, Tesla investors are using social media to back their claim against Musk’s assertions concerning their ADAS technologies.
A tweet posted by @BradMunchen highlights a video where a Tesla vehicle attempts a prohibited turn, showcasing its failings.
The lawsuit references a Bloomberg article indicating that during its debut weekend offering paid rides, Tesla’s self-driving taxis mismanaged traffic laws, with footage capturing cars making wrong turns and breaches of speed limits.
Additional Tesla Legal Troubles:
- Tesla fumbles more legal challenges over Musk’s FSD statements
- Myriad Autopilot settlements preceding the $243 million lawsuit
- Another lawsuit unfolding after a $323 million Autopilot ruling
Post that initial weekend? Tesla’s share price dropped 6% in just two days, hurting numerous investors in the process.
The lawsuit also brings up a substantial recent court verdict against Tesla, known as Morand v. Tesla Inc., currently unfolding in the U.S. District Court for the Western District of Texas.
Related: Elon Musk parts ways with political plans before they launch
