Tesla’s “activist shareholders” appear to be one of many largest threats to the corporate and its CEO, Elon Musk, who has spoken extensively about them in latest occasions. They’re as much as their newest bit of labor towards the corporate, suing each Tesla and Musk, accusing them of securities fraud by alleging they hid “important danger” over the Robotaxi launch in Austin, Texas.
On Monday night time, a bunch of shareholders sued Tesla and Musk in a proposed class motion lawsuit in Texas federal courtroom. They declare Tesla misled buyers in regards to the security of the automobiles used within the Robotaxi rollout in Austin, which began on June 22.
The swimsuit signifies that movies present the automobiles “dashing, exhibiting sudden braking, driving over a curb, coming into the mistaken lane, and dropping passengers off in the midst of multilane roads.” Reuters first reported on the lawsuit.
The plaintiffs are looking for damages for shareholders between April 19, 2023, and June 22, 2025.
Tesla’s Robotaxi platform has been working for lower than two months, and the corporate has already expanded its geofence in Austin twice.
🚨 Tesla Austin Robotaxi geofence sizes (in sq. miles):
Preliminary: 6/22 – ~20 sq. miles
First Enlargement: 7/14 – ~42 sq. miles
Second Enlargement: 8/3 – ~80 sq. miles pic.twitter.com/IwnvSJseE4
— TESLARATI (@Teslarati) August 3, 2025
Within the roughly six weeks that Robotaxi has been operational, Tesla has solely had one incident reported to the Austin Authorities, and it was a “Security Concern” in June 2025. Since July 2023, which is when autonomous automobile operation started in Austin, 130 incidents have been reported. AV Journey, Cruise, Waymo, and Zoox additionally function in Austin.
Waymo has essentially the most incidents with 73. Its first was in June 2024 when a unit blocked site visitors.
Activist Shareholders
Musk has warned that activist shareholders are probably harmful to each Tesla and his place as CEO. He lately spoke about them through the Q2 Earnings Name relating to his stake within the firm:
“That may be a main concern for me, as I’ve talked about previously. I hope that’s addressed on the upcoming shareholders assembly. However, yeah, it’s a massive deal. I need to discover that I’ve received so little management that I can simply be ousted by activist shareholders after having constructed this military of humanoid robots. I believe my management over Tesla, Inc. must be sufficient to make sure that it goes in an excellent path, however not a lot management that I can’t be thrown out if I am going loopy.”
Tesla’s Board yesterday made an try to assist safe Musk’s stake by providing him a large 96 million share pay bundle of restricted inventory. It’ll solely assist his stake within the firm bump up barely to 14.6 % from 12.9 %.
