Tesla CEO Elon Musk Responds to Shareholders' Lawsuit
Tesla CEO Elon Musk responds to shareholders' lawsuit: ‘They are scum of the Earth. The worst….’

Tesla shareholders recently filed a lawsuit accusing CEO Elon Musk and the EV maker of securities fraud for hiding safety risks of Tesla's self-driving tech, including the Robotaxi. The lawsuit alleges that Tesla misled investors by not disclosing problems with its self-driving vehicles. Tesla CEO Elon Musk has responded to the lawsuit on social media platform X (formerly Twitter). He said lawsuits like this are not driven by real investors but by "class-action lawyers" trying to earn a share of the settlement. Musk called these lawyers "scum of the Earth" and criticized the legal system for allowing such cases.

“It’s never actually investors. It’s always shitty class-action lawyers grifting for their percentage of the verdict. They are scum of the Earth. The worst human being I’ve ever encountered,” CEO Elon Musk wrote on X.

What Tesla Shareholders Said About Its Robotaxi Service

As reported by news agency Reuters, Tesla shareholders have alleged that the company exaggerated the capabilities of its autonomous driving technology, thereby overstating its business outlook and inflating its stock value. However, the company's stock declined by 6.1% across two consecutive trading sessions following the start of the test.

The lawsuit aims to recover unspecified damages for investors who held shares between April 19, 2023, and June 22, 2025, Reuters added.

Tesla Robotaxi Service Teased to Launch in San Francisco

The lawsuit comes after Elon Musk teased the launch of Tesla’s robotaxi service in San Francisco last week. The service’s expected expansion will follow a limited pilot in Austin, Texas, where a small fleet of vehicles started operating within a geofenced area.

In San Francisco, the initial operational zone is expected to cover the broader Bay Area. Select Tesla owners have received early invitations, and the launch has reportedly also been moved up.

Expansion plans for this service even include states like Nevada, Arizona, and Florida, but broader deployment depends on obtaining regulatory approvals. In California, Tesla has yet to complete the permit process required for full driverless services, with state agencies emphasizing safety evaluations.

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