Key Takeaways
As the most valuable automaker in the world, it is perhaps inevitable that Tesla faces a never-ending stream of lawsuits from disgruntled customers, employees and crash victims.
Most recently, the family of Genesis Giovanni Mendoza-Martinez, who died when the Model S sedan he was driving with assistance from Tesla’s Autopilot, has accused the company of fraudulently misrepresenting the software’s safety.
According to the family’s lawsuit, Tesla’s autopilot feature failed to detect and avoid a fire truck, causing a fatal collision on Interstate 680, several news outlets have reported .
The plaintiffs argue that Tesla is liable for the driver’s death due to the company and its CEO Elon Musk overstating the safety of its Autopilot and Full Self-Drive systems.
Denying the allegations, Tesla has sought to shift the blame onto the deceased driver. The accident “may have been caused in whole or in part” by Giovanni Mendoza’s “own negligent acts and/or omissions,” the firm claimed in court.
No additional warnings “would have, or could have prevented the alleged incident, the injuries, losses and damages alleged,” it concluded.
For Tesla, the latest lawsuit adds to a growing body of litigation around its self-driving software.
In another case, the family of motorcyclist Landon Embry alleged that autopilot failed to prevent a fatal crash in Utah. Meanwhile, in April, Tesla reached a settlement agreement with the family of Wei Lun Huang, who died in a crash while using autopilot in 2018.
The automaker is also locked in a class-action lawsuit that claims it misled consumers about its Autopilot and Full Self-Drive features, creating a false impression of its capabilities.
In April 2024, two former employees who worked at Tesla’s Fremont assembly plant accused the company of violating California labor laws.
They allege that the firm failed to pay overtime or provide paid sick leave, didn’t provide legally mandated meal and rest breaks, and didn’t reimburse employees for work-related expenses.
The lawsuit seeks more than $5 million in damages on behalf of thousands of Tesla workers across the state.
Worse still for the company, the latest litigation isn’t the only lawsuit Tesla is facing in relation to its employment practices.
Earlier this year, a federal judge declined to dismiss a case by the US Equal Employment Opportunity Commission, which has accused Tesla of overseeing workplace discrimination and harassment of Black workers at several California locations.
The firm is also being sued by a California civil rights agency and a class of 6,000 workers over similar allegations.
In its most high-profile workplace discrimination case to date, Tesla was forced to pay around $3.2 million to Owen Diaz – a Black former employee who claimed the firm failed to prevent severe racial harassment at the Fremont factory
Diaz accused Tesla of failing to act when he complained to managers that other employees used racist slurs and depicted swastikas, racist caricatures, and epithets on the factory walls.
Meanwhile, in May, former employee Tyonna Turner settled a lawsuit with Tesla after alleging she was fired for reporting severe sexual harassment at the Fremont assembly plant.
Date | Plaintiff(s) | Summary |
---|---|---|
January 2018 | Richard Tornetta | Shareholder Richard Tornetta filed a lawsuit challenging Elon Musk’s $56 billion compensation package, alleging it was excessive and approved without proper disclosure. |
February 2022 | California Department of Fair Employment and Housing (DFEH) | The DFEH sued Tesla, alleging systemic racial discrimination and harassment at its Fremont factory. |
September 2022 | Tesla Owners | A class-action lawsuit accused the company of misleading consumers about the capabilities of its Autopilot and Full Self-Driving (FSD) features. |
June 2023 | Employees’ Retirement System of Rhode Island | The Employees’ Retirement System of Rhode Island sued Elon Musk, alleging he made billions in unlawful profits by selling Tesla stock using insider information. The lawsuit seeks to compel Musk to return these profits. |
May 2024 | Thomas LoSavio | California resident Thomas LoSavio filed a lawsuit alleging that Tesla misled consumers about the self-driving capabilities of its vehicles. |
August 2024 | Family of Landon Embry | The family of motorcyclist Landon Embry filed a lawsuit against Tesla, alleging that its Autopilot system failed to prevent a fatal crash in Utah. |
October 2024 | Estate of Charles Leach | The estate of Charles Leach, who died in a 2021 Tesla crash, is seeking sanctions against Tesla for allegedly breaching a court order by not sending an authorized official to a settlement mediation. |
December 2024 | Family of Genesis Giovanni Mendoza-Martinez | The family of Genesis Giovanni Mendoza-Martinez alleged that Tesla’s Autopilot system failed to detect and avoid a fire truck, leading to a fatal crash. |