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Tesla and Musk sued by shareholders for Robotaxi claims

Elon Musk, Tesla and other companies were accused of securities fraud by investors who claimed that they had concealed the risk associated with the self-driving cars, such as the Robotaxi.

The class action lawsuit was filed in federal court in Austin, Texas on Monday night after Tesla's robotaxis were shown to speed, brake suddenly, drive over a curb and enter the wrong lane. They also dropped passengers in the middle multilane highways.

Tesla's stock price dropped 6.1% in two days of trading after the test. Shareholders accused Tesla of exaggerating the effectiveness of its self-driving technology and inflating the company's business prospects.

The lawsuit is seeking unspecified damages from April 19, 2023 to June 22, 2025.

Tesla did not respond to a comment request on Tuesday. (Reporting and editing by Giles Elgood in New York. Reporting by Jonathan Stempel)

(source: Reuters)