Tesla's Robotaxi and Cybertruck Face Troubling Issues in Lawsuits and Crashes

Tesla faces multiple legal actions and incidents related to its Cybertruck and robotaxi technology. The company has been sued after a cybertruck crash, woman sues over bridge incident, defective Model S door handles, and a 15th 'robotaxi' crash occurred.

TSLA is facing mounting legal and safety challenges to its autonomous vehicle program. A Texas woman filed a $1 million lawsuit after her Cybertruck, operating on Full Self-Driving (FSD) mode, attempted to drive straight into a concrete barrier at a Y-shaped overpass split on Houston's 69 Eastex Freeway, rather than following the curve. The lawsuit includes the unusual allegation that Tesla was negligent in retaining Elon Musk as CEO.

The Cybertruck lawsuit adds to broader safety concerns surrounding Tesla's autonomous technology. The company's robotaxi service in Austin has reportedly experienced crashes at roughly four times the human rate, with viral videos showing FSD directing vehicles through railroad crossing barriers and attempting to steer into lakes. NHTSA is currently investigating 2.88 million Tesla vehicles equipped with FSD after connecting 58 incidents to the system, including crashes where FSD steered into opposing lanes.

For investors, the growing legal exposure and regulatory scrutiny pose risks to Tesla's robotaxi revenue projections, which have been a key component of the company's premium valuation. Any NHTSA enforcement action or adverse court ruling could force costly software recalls or operational restrictions on the Austin robotaxi program, potentially delaying Tesla's autonomous vehicle monetization timeline.