Tesla in the courtroom: List of lawsuits involving Musk-owned car company

Tesla, the pioneering electric vehicle (EV) founded in 2003, has long been positioned as the symbol of innovation under the leadership of Elon Musk.

However, behind its technological breakthroughs and cult-like following lies a sprawling legal history.

Since 2008, Tesla has faced more than 1,750 lawsuits worldwide, with at least 200 in China alone. 

Many of these cases stem from the company’s controversial work culture, ambitious promises about its technology, and Musk’s own often unfiltered public statements.

Here’s a detailed list of all the lawsuits filed against the automobile company.

Racism class action

In 2017, a former Tesla factory worker, Marcus Vaughn, accused the company of tolerating rampant racism at its Fremont facility.

Allegations included racial slurs, offensive graffiti, and even nooses at workstations.

 By February 2024, a judge approved class-action status covering nearly 6,000 Black employees, escalating this into one of the largest racial discrimination suits in the company’s history.

Shareholder revolt: The $55 billion pay package

Tesla shareholder Richard Tornetta filed a lawsuit in 2018 challenging Musk’s record-breaking $55 billion compensation plan.

In early 2024, Delaware Judge Kathaleen McCormick struck down the package, calling it “an unfathomable sum.”

“Funding secured” securities litigation

Notably, the most infamous legal battle began in 2018 when Musk tweeted he was considering taking Tesla private with “funding secured.”

The claim sparked a class-action suit and SEC scrutiny. While a jury cleared Musk and Tesla of liability in 2023, related derivative lawsuits remain pending.

Whistleblower claims and retaliation

In 2020, a former Tesla employee, Steven Henkes, alleged he was fired after raising alarms over fire risks in solar panel installations.

Multiple fires had already occurred at Walmart and Amazon sites.

Tesla Autopilot crash case

A 2021 crash involving Tesla’s Autopilot seriously injured five Texas police officers. They filed a lawsuit accusing Tesla of knowingly deploying defective driver-assist technology.

The case, still pending trial, could have major implications for Tesla’s safety reputation.

Sexual harassment and toxic workplace claims

Between 2021 and 2022, multiple women accused Tesla’s Fremont factory of enabling sexual harassment and hostile conditions.

Separately, California’s Civil Rights Department sued Tesla for systemic racial bias, citing reports of Black workers enduring daily slurs and discriminatory practices.

Autopilot and phantom braking lawsuits

Tesla’s Autopilot has been at the centre of numerous fatal crash litigations, including those involving Jeremy Banner and Jenna Monet.

Additionally, a 2022 class action alleged Tesla vehicles suffer from “phantom braking,” where cars suddenly stop without warning.

Courts have allowed these cases to proceed, underscoring scrutiny of Tesla’s self-driving promises.

Misleading autonomy advertising

A federal lawsuit in 2022 claimed Tesla misled buyers into believing its cars would soon become fully autonomous.

Regulators have already forced recalls of over 300,000 cars for unsafe behaviors at intersections, fueling skepticism over Musk’s bold Full Self-Driving (FSD) claims.

2019 garage incident

In a chilling 2019 case, a pregnant Tesla owner sued after her two-year-old accidentally activated her Model X, pinning her against a garage wall.

She suffered broken bones and premature labour. The lawsuit alleges Tesla failed to design safeguards to prevent unintended acceleration.

Talent diversion to xAI

Recently, in 2024, Tesla shareholders accused Musk of siphoning talent and resources to his separate AI startup, xAI.

More than a dozen Tesla staffers reportedly defected, raising questions about conflicts of interest and Musk’s divided focus between his many ventures.