Tesla Shareholders Accused of Overstating Robotaxi Potential

Tesla investors have filed a lawsuit against Elon Musk and the company for allegedly hiding significant risks associated with the firm’s self-driving vehicles.

The class action lawsuit, which alleges securities fraud on behalf of Musk and Tesla, was submitted on Monday evening. Tesla launched its first public trial of its self-driving taxis in late June close to its Austin, Texas, headquarters. Observations from the test included instances of the vehicle accelerating unexpectedly, rapid braking, mounting the curb, driving against traffic, and dropping off passengers in the center of a busy road. The National Highway Traffic Safety Administration (NHTSA), the main regulatory body for U.S. transportation, is probing the pilot testing of Robotaxi.

Investors claimed that Musk and Tesla systematically overstated the effectiveness and potential of autonomous driving technology, which artificially inflated Tesla’s financial forecasts and stock prices. Following the commencement of testing, Tesla’s stock plummeted by 6.1%, erasing about $68 billion in market capitalization.

Shareholders pointed to Musk’s assurances during the April 22 conference call, where he stated that Tesla was “laser-focused” on launching Robotaxi in Austin that June and claimed that their approach to autonomous driving would enable a “scalable and safe deployment across varied terrains and scenarios.”

Tesla has not responded to requests for comments as of Tuesday. The company’s CFO, Vaibhav Taneja, and his predecessor, Zachary Kirkhorn, are also named in the lawsuit.

The growth of Robotaxis is critical for Tesla as it contends with diminishing demand for aging electric vehicles and resistance to Musk’s political views.

Musk, known as the world’s richest individual, claims that the service will reach half the U.S. population by the year’s end, but he first needs to persuade regulators and the public of the safety of his technology. He asserts that Robotaxi services have expanded into the San Francisco Bay Area, where it was previously based; however, regulations have hindered Tesla from offering paid autonomous rides without a new permit, as reported by the Ministry of Automobile.

On August 1, Florida deputies discovered that 33% of a driver’s liability in connection with a 2019 crash involving the self-driving software resulted in the death of a 22-year-old woman, injuring her boyfriend and incurring damages amounting to roughly $243 million. Tesla plans to contest the driver’s liability and will appeal the decision.

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Investigating Tesla’s Robotaxi Launch: Irregular Driving Captured in Video

Major US transportation safety regulators are seeking information from Tesla following videos that appear to show the vehicles exceeding speed limits and autonomous robotaxis driving in the wrong lanes. The company unveiled its service in Austin, Texas, over the weekend.

Tesla has notably expedited the initial limited rollout of its Robotaxis, with some influencers being paid to showcase their experiences. However, rather than serve as effective promotion, these videos seem to have drawn the scrutiny of the National Highway Traffic Safety Administration (NHTSA), particularly as the cars struggled to adhere to traffic regulations.

“The NHTSA is aware of the mentioned case and is in communication with the manufacturer to gather further information,” the agency stated.


The debut of Robotaxi over the weekend featured about 10 “safety drivers” in the passenger seats navigating Austin’s designated areas. Tesla CEO Elon Musk promoted the launch as a significant achievement and committed to enhancing driving safety, but some influencers shared videos that appeared to show glitches or speeding incidents involving the Robotaxis.

One video shared by a Tesla investor, who previously hosted a podcast regarding the brand, displayed a Robotaxi wobbling after misinterpreting a left turn, crossing over a double yellow line before correcting itself. During this time, there were no oncoming vehicles.

In another clip, a pro-Tesla YouTuber praised a car for maintaining speed within legal limits.

Musk has placed significant stakes on the future of the carmaker tied to the Robotaxi program, having long presented a vision where millions of self-driving cars traverse cities globally. Both regulators and investors are closely examining whether Tesla can convert these prospects into tangible outcomes and if it can sustain its operations. Musk’s prolonged history of unmet promises.

“We anticipate millions of Teslas to function entirely autonomously by next year,” Musk declared during an earnings call in April, having made a similar assertion in 2019.

The NHTSA has not pre-emptively greenlit new technologies or driving systems, the statement mentioned. Instead, the manufacturer affirms that the vehicle meets the agency’s standards, while investigators assess potential safety defects. The NHTSA reviews the reports and related information to determine how to tackle road safety concerns.

“NHTSA will persist in enforcing regulations for all automobile manufacturers in accordance with the Automobile Safety Act and our data-driven, risk-based investigation methodology,” the agency remarked.

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Robotaxis has gained heightened significance for Tesla this year, particularly as first-quarter sales declined and profits plummeted by 71% year-on-year. Despite diminishing revenues, Musk asserted that Tesla’s Robotaxis are destined to be the future of transportation.

In addition to a preliminary inquiry into Robotaxis, the NHTSA is also conducting an open investigation that began in 2024 to assess the safety of Tesla’s “full self-driving” mode under conditions of reduced visibility. Tesla was reported to have deployed autonomous functions which resulted in a fatality of a 71-year-old woman in 2023 while driving in Arizona during sunset when glare affected road visibility.

Source: www.theguardian.com

Phoenix Airport now offers Waymo’s curbside robotaxi pickup service

Choose what’s currently available for Waymo One riders Pick it up or drop it off? via the company’s robotaxis curbside at Phoenix Sky Harbor International Airport.

Waymo became the first self-driving vehicle operator in the U.S. to launch a paid robotaxis service to and from airports in November 2022. This service ran to the airport shuttle stop at his 44th Street SkyTrain station. Navigating the hectic pace of hitting the terminal’s curbs is a whole new challenge, but in order to safely deploy and learn, Waymo has set a time limit of 10pm to 6am, with only Terminals 3 and 4 in place. Start.

Waymo has already completed “tens of thousands of airport trips” and provides more than 1,000 rides each week. According to the company. Waymo says the average travel rating for airport trips is about 4.7 out of 5 stars.

Waymo’s expansion of airport services comes as former competitor Cruise laid off nearly a quarter of its employees in the wake of an Oct. 2 incident in which a pedestrian was dragged under the company’s robot taxi. This was done amid the dismissal of several executives.

Waymo’s new airport service will be fully autonomous (meaning there is no human safety operator behind the wheel) and will be available to “a select group of active riders in Phoenix, and not necessarily just trusted testers.” “It’s just not available,” said Chris Bonelli, product communications manager. Waymo told TechCrunch. Waymo’s trusted testers are riders who have been vetted by the company and signed non-disclosure agreements.

As the Alphabet-owned company gains experience at the terminal, it plans to open these pick-up locations to all passengers and expand to 24/7 service in the “coming months.”

“Last year, we partnered with Waymo to become the first airport in the world to offer travelers the ability to travel to the airport in self-driving vehicles,” Chad Makowski, director of aviation at Sky Harbor Airport, said in a statement. . “This partnership has given us confidence in the technology, and we are excited to take the next step and safely extend this innovative service to the curb of the terminal.”

Source: techcrunch.com

Cruise’s robotaxi permit in California promptly suspended by DMV

The California Department of Surface Transportation on Tuesday immediately halted Cruise’s rollout and driverless testing permit, shutting down GM’s self-driving car subsidiary’s robotaxi business in San Francisco, just months after receiving the final permits needed for commercialization. announced that it was finished.

The DMV’s suspension order, viewed by TechCrunch, states that the department suspended Cruz’s permit because he withheld video footage from an ongoing investigation. The DMV said it met with Cruise representatives on October 3, a day after a pedestrian who was initially believed to have been hit by a human-driven car was pinned under Cruise’s robot taxi.

The order read:

“During the meeting, the department was shown video footage of the accident that was captured by the AV’s on-board camera. The video footage submitted to the department ended with the AV’s initial stop after the sudden braking maneuver. The department was not shown any footage of the AV’s subsequent movements for the execution, and Cruz did not disclose that any additional movements of the vehicle occurred after the vehicle’s initial stop. We first learned of the move through discussions with other government agencies. The Department requested Cruz to provide a copy of the video, including additional footage, which the Department received on October 13, 2023. ”

The DMV has not disclosed the name of the partner agency. However, a person with knowledge of the incident told TechCrunch that the National Highway Traffic Safety Administration shared the information. It’s worth noting that NHTSA has launched its own investigation into the Cruise’s self-driving system following several incidents involving pedestrians in San Francisco, including the Oct. 2 incident.

A portion of the video, which the DMV said it did not initially see, showed the cruise robotaxi come to a complete stop and then attempt a pullover maneuver while a pedestrian was underneath the vehicle. The AV traveled approximately six feet, reached a speed of seven miles per hour, and came to a complete and final stop, according to the order.

The DMV later said in an order that Cruise’s inaction impeded the department’s ability to effectively and timely assess the safe operation of the company’s vehicles, putting public safety at risk.

Cruz told TechCrunch that he shared the entire video with the DMV. The DMV told TechCrunch it stands by that assessment.

“Public safety remains California DMV’s top priority, and the department’s self-driving vehicle regulations provide a framework to facilitate the safe testing and deployment of this technology on California’s public roads,” the DMV said in a statement. Ta. “DMV may immediately suspend or revoke a permit if there is an unreasonable risk to public safety. There is no set time frame for the suspension.”

The DMV, which regulates the testing and deployment of self-driving vehicles in the state, said Cruise would have to go through a number of steps to get its suspended permit reinstated and would not approve it unless the agency meets requirements to its satisfaction. said. The DMV added that this decision does not affect the company’s authorization for safety driver testing.

The California DMV’s decision to suspend the license came after officials determined the vehicle was unsafe for public operation and Cruise misrepresented information related to self-driving technology installed in the vehicle. said that it was done. The department also said Cruise’s self-driving car tests on public roads posed an unreasonable risk to the public.

Cruise said it learned of the California DMV’s suspension of driverless permits at 10:30 a.m. today, 15 minutes after the California DMV issued a press release. Cruise spokeswoman Hannah Lindow emailed the following statement, which was also posted on the cruise ship. Social media site:

“As a result, we will be suspending the operation of unmanned self-driving vehicles in San Francisco. Ultimately, we will develop and deploy self-driving vehicles to save lives. DMV will investigate. In this incident, a human hit-and-run driver tragically struck a pedestrian and threw him into the path of an AV. The AV actively braked before the collision and detected the collision, creating an additional safety issue. The AV tried to pull over, but before coming to a final stop it continued to stop and pulled the pedestrian forward. Our thoughts continue to be with the victim. I wish you a speedy and full recovery.

Immediately following the incident, our team proactively shared information, including the entire video, with the California DMV, CPUC, and NHTSA. We have been working closely with regulators to answer their questions and assist law enforcement in identifying the hit-and-run driver’s vehicle. Our team is currently conducting analyzes to identify potential enhancements to the AV’s response to this type of very rare event. ”

The suspension comes less than three months after Cruise and competitor Waymo received the final permits needed to offer commercial robotaxi service 24/7 throughout San Francisco. The permit was issued by the California Public Utilities Commission, which regulates commercial driverless ride permits. But without a DMV permit to allow driverless vehicles on public roads, a CPUC permit is essentially worthless.

The CPUC faced opposition from residents and some city officials who cited numerous instances of vehicles breaking down and stopping in the middle of the road (known as “bricking”), disrupting the flow of traffic, public transportation, and emergency response agencies. Nevertheless, the final permit was approved.

However, that victory did not last long. Within days of receiving the CPUC’s permit, a series of incidents occurred, including a collision between a cruise robotaxi and an emergency vehicle that injured passengers. The DMV told Cruise that the number of robotaxis in service must be reduced by 50% while the department investigates the incident. In response, some San Francisco city officials formally asked state regulators to redo an August hearing to expand robotaxi permits to Cruise and Waymo.

Pressure to suspend or revoke Cruise’s permit increased after a woman was struck by a human-driven vehicle and pinned under Cruise’s robotaxi on October 2. A video shot by Cruise and seen by TechCrunch shows the robotaxi being hit by a human-driven car, launching in front of the self-driving car, then braking and running over a pedestrian who was lying on the road. It was reflected.Cruz said in it description of the event The robotaxi “braked aggressively” to minimize the impact. Still, the pedestrian was hit and then pinned under the vehicle, according to police and video from local witnesses showing the pedestrian pinned under the robotaxi.

TechCrunch saw the shortened video. At the time, it was presented as a complete video.

San Francisco police have launched an investigation into the incident. NHTSA launched its own investigation soon after.

This story is unfolding…

Source: techcrunch.com