Legal risks for Tesla reach up to $14.5 billion

Tesla is facing a potential financial liability of up to $14.5 billion (around 13.5 billion euros) due to more than 20 major legal cases. These cases include fatal accidents involving its Autopilot and Full Self-Driving (FSD) systems, claims of misleading advertising, shareholder lawsuits over the Robotaxi project, and allegations of racial discrimination and harassment. The legal challenges are categorized into seven main areas, with total estimated risks ranging from $2.7 billion to $14.5 billion.

Autopilot and FSD accident risks estimated at $1–5 billion

The legal risk stemming from accidents involving Tesla’s Autopilot and FSD systems is estimated between $1 billion and $5 billion (approximately 0.93 to 4.65 billion euros). This includes potential liabilities from incidents where the systems failed to prevent crashes. A class action lawsuit over stock fraud related to the Robotaxi project also targets a similar range of liability.

Racial discrimination claims add $200 million to $1.2 billion

Complaints of racial discrimination at Tesla’s Fremont factory are estimated to carry a potential liability of between $200 million and $1.2 billion (about 186 million to 1.1 billion euros). These claims are part of broader legal challenges involving workplace conditions and employee treatment.

Misleading advertising and other issues add up to $500 million

Collective lawsuits over misleading advertising regarding the FSD system are estimated at $100 to $500 million (93 to 465 million euros). Additional issues, such as "phantom braking," overinflated autonomy claims, odometer manipulation, and the recall of Powerwall 2 batteries, contribute further to the legal risk. Actions on the "right to repair" and potential fines from the National Highway Traffic Safety Administration (NHTSA) could add up to $139.4 million (about 130 million euros).

Tesla’s legal strategy challenged by court ruling

Tesla initially argued that statements by Elon Musk about Autopilot and "fully autonomous driving" were just optimistic corporate claims and not factual. This strategy was tested when a federal jury in Miami ruled in August 2025 that Tesla was 33% responsible for a 2019 fatal accident involving Autopilot. The jury awarded $243 million (approximately 226 million euros) in damages, including $200 million (186 million euros) in punitive damages. Tesla had previously turned down a $60 million (56 million euros) settlement offer.

Over 50 fatal accidents involving Autopilot and FSD

According to reports from the NHTSA and the TeslaDeaths.com database, between 50 and 60 fatal accidents involving Autopilot or FSD have been recorded, primarily between 2016 and 2020. Each case could lead to a verdict of $100 to $300 million (93 to 279 million euros) or a settlement of $20 to $60 million (18 to 56 million euros) if Tesla avoids a jury. Hundreds of other lawsuits involve non-fatal accidents, while the NHTSA is investigating 2.88 million FSD vehicles for 80 traffic code violations.

Legal action over deceptive advertising claims

A federal judge in California ruled in August 2025 that a collective lawsuit against Tesla for deceptive business practices was valid. The lawsuit involved customers who purchased enhanced Autopilot or FSD packages since October 2016. The judge rejected Tesla’s request for arbitration and allowed for full refunds, meaning affected customers could recover the total amount they paid for the FSD, which ranges from $5,000 to over $15,000 (approximately 4,650 to 14,000 euros) per vehicle.

Tesla admits hardware limitations but offers no solution

Tesla has marketed vehicles since October 2016 as being equipped with "all the necessary hardware for fully autonomous driving." However, Elon Musk admitted in January 2025 that the company would need to replace all the HW3 computers in vehicles with the FSD option, calling it a complex and tedious process. Despite this admission, no global replacement plan or refund has been announced. Tesla has only mentioned a lightweight software version "v14 Lite" for HW3, expected in the second quarter of 2026, but it has not yet been launched.

California DMV calls Tesla’s claims 'false'

In December 2025, the California Department of Motor Vehicles (DMV) stated that Tesla’s use of the term "fully autonomous driving" was "clearly, without ambiguity, false." Instead of revising its marketing, Tesla chose to sue the DMV. The company is also dealing with the Morand v. Tesla collective action, which follows the public failure of the first Robotaxi tests and a sharp drop in its market value. Tesla has approximately $40 billion (37 billion euros) in cash but faces legal risks estimated between $2.7 billion and $14.5 billion.