Tesla's tech faces scrutiny

TESLA HAS been dealt a string of bad news recently, including a glitchy rollout of its robotaxis in Texas.

- CAROLINE PETROW-COHEN

TESLA HAS been dealt a string of bad news recently, including a glitchy rollout of its robotaxis in Texas.

This spring, Elon Musk announced he was leaving his role at the White House to refocus on Tesla amid falling vehicle sales and a brand reputation crisis.

But as Musk works to turn Tesla around with a successful robotaxi venture, recent lawsuits have complicated his efforts and raised questions about the company’s self-driving technology.

Last month, the California Department of Motor Vehicles sued the company, alleging false advertising about its Autopilot and Full Self-Driving features and seeking to suspend sales of Teslas in the state.

More bad news came this month when a Miami jury ruled that Tesla was partly responsible for a fatal crash involving its Autopilot system and must pay the victims $240 million. Though Tesla has previously faced similar suits, this one was the first to reach a jury verdict and not be settled out of court.

The case could open the door to further claims against the company, experts said.

“If and when the dam breaks, and they get held liable, Tesla could be ina lot of financial trouble,” said Carnegie Mellon University engineering professor Raj Raj-kumar, who specializes in autonomous driving.

Meanwhile, Tesla shareholders have been growing restless. A few days after the Miami verdict, a shareholder lawsuit accused Musk of inflating the company’s stock by exaggerating the readiness of its robotaxi program, which launched this summer in Austin, Texas, where the company is headquartered.

Tesla did not respond to request for comment.

Though some investors and bullish analysts maintain that Musk will eventually deliver on his promises, the cases have renewed questions about the tech mogul’s credibility and whether he can perfect a technology that is key to the company’s future.