Tesla Shareholders Sue Musk Over Self-Driving Technology

A class-action lawsuit accuses Elon Musk of fraud and concealing risks associated with Tesla’s self-driving technology.

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Tesla
Oil

Tesla

Tesla Shareholders Sue Elon Musk for Fraud Over Self-Driving Technology
Several shareholders of Tesla have filed a class-action lawsuit against the company’s CEO, Elon Musk,
in federal court in Austin, Texas, accusing him of securities fraud over what they described as concealing material risks related to self-driving technology—particularly in the company’s “robotaxi” vehicles.

According to court filings, the shareholders allege that Musk and the company deliberately misled investors about the safety and efficiency of the self-driving system, which—according to the lawsuit—resulted in an artificially inflated Tesla share price.

These developments follow a controversial public demonstration conducted by the company in Austin last June,
in which video footage revealed several serious failures, including speeding, veering off course,
sudden braking, and even dropping passengers off in the middle of a highway—raising significant concerns about the safety of the technology.

Following that demonstration, Tesla’s stock price dropped sharply by 6.1% over just two sessions,
wiping out about $68 billion in market value and increasing pressure on the company’s executive leadership.

The shareholders base their case on a series of prior statements by Musk,
in which he claimed the company was close to deploying robotaxi technology “safely and at scale”—a claim they now deem misleading given the system’s actual performance.

This lawsuit comes weeks after a Florida court ordered Tesla to pay $243 million in damages over a fatal 2019 accident involving its self-driving feature, underscoring the growing legal and technical challenges the company faces in this field.

Oil

Oil Rebounds After Sharp Losses, Boosted by U.S. Threats Against Russian Crude Buyers and Falling Inventories
Crude oil prices rose notably during Wednesday’s trading, recovering from the previous session’s five-week lows,
supported by new U.S. threats to impose additional sanctions on countries continuing to purchase Russian oil,
as well as positive U.S. inventory data.

Brent crude futures climbed 0.9% to $68.28 a barrel, while West Texas Intermediate futures rose 0.8% to $65.69 a barrel.

Both benchmarks had fallen by more than $1 a barrel on Tuesday,
closing at their lowest levels in five weeks amid growing concerns over a potential increase in global supply following OPEC+’s announcement of plans to implement production hikes starting in September.

Meanwhile, U.S. President Donald Trump escalated his rhetoric toward India,
threatening to impose new tariffs this week after levying 25% duties last week over New Delhi’s continued purchases of Russian oil—a move that heightened geopolitical concerns over energy supplies.

On the data front, the American Petroleum Institute provided a positive boost to prices,
reporting a sharp drop in U.S. crude inventories of 4.2 million barrels last week,
compared to analysts’ expectations for a smaller decline of about 1.8 million barrels.

Tesla Shareholders Sue Musk Over Self-Driving Technology

Tesla Shareholders Sue Musk Over Self-Driving Technology

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