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Hydrogen Cars Were Supposed to Be the Future. Now Owners Are Suing Toyota
Several Mirai drivers have found themselves still paying for cars they don’t even drive anymore.

The promise of a hydrogen-fueled future has turned into a nightmare for hundreds of car owners in California. Drivers who purchased Toyota’s flagship fuel cell vehicle, the Mirai, are now suing the automaker and other key players, alleging they were misled about the viability of the hydrogen fueling network. With infrastructure collapsing and hydrogen prices surging, several Mirai drivers have found themselves still paying for cars they don’t even drive anymore.
The legal backlash comes as Toyota and other early champions of hydrogen-powered mobility face growing criticism over whether they pushed a technology too soon into an unprepared market.
A green gamble gone wrong
Sam D’Anna had barely driven his $75,000 Toyota Mirai in July 2022 when he realized something was wrong. His Mirai’s hydrogen tank was nearly empty. A dealership staffer at Roseville Toyota ran over to inform him that the nearest fueling station, in Citrus Heights, was offline. The next closest one was in West Sacramento, nearly 25 miles away. That should not be a problem for the Mirai due to its 402-mile EPA-estimated range, but since the car was almost empty, his range indicator showed only 22 miles.
“I’ve already signed,” D’Anna told the Sacramento Bee. He ended up droving off the lot with the air conditioning turned off to conserve fuel. “This is bad. My heart was dropping into my stomach.”
D’Anna is now one of the plaintiffs in a class action lawsuit against Toyota, hydrogen station operator FirstElement Fuel, the Hydrogen Fuel Cell Partnership, and California Governor Gavin Newsom.
The complaint, filed in Los Angeles Superior Court, accuses the defendants of fraud, negligence, and violations of consumer protection laws, among others. It alleges that Toyota knowingly sold vehicles reliant on a fueling ecosystem that was more than subpar, trapping buyers in loans for cars they can barely use.
D’Anna’s Mirai now sits unused under a tarp at his father’s house in El Dorado County. He still pays nearly $1,100 a month on the car, on top of a $1,200 monthly payment for a Ford F-150 hybrid he purchased in 2023 as a replacement.
Infrastructure that never materialized
At its peak, California’s hydrogen vision appeared ambitious but achievable. The state pledged tens of millions of dollars to build a network of fueling stations. Automakers like Toyota, Hyundai, and Honda introduced sleek zero-emission vehicles powered by compressed hydrogen gas.
The pitch was compelling. Drivers could refuel in a few minutes and emit only water vapor, a seemingly reasonable if not preferable alternative to electric vehicles, which were still gaining traction.
But the real-world rollout failed to keep pace with the marketing. California currently has about 50 hydrogen fueling stations, as per data from the Hydrogen Fuel Cell Partnership. And in 2024, Shell exited the market and shuttered multiple locations.
Even when hydrogen stations are available, they are often plagued by maintenance issues and inconsistent supply. Hydrogen prices have tripled too, and what once cost $70 to fill now runs closer to $200, the Bee noted.
In a statement to Teslarati, Patrick Peterson, auto expert at GoodCar.com, said, “Toyota and Hyundai were among the first to push hydrogen forward, and their vehicles are genuinely impressive. But the issue isn’t the tech, it’s everything around it. The infrastructure just isn’t ready. Most drivers aren’t willing to gamble on whether they’ll find a working hydrogen station or deal with issues like frozen fuel nozzles.”
Peterson said hydrogen’s biggest flaw is its lack of consistency. “EVs, for all their early bumps, have earned consumer trust. You’ve got widespread charging access, predictable performance, and fewer question marks. Hydrogen hasn’t hit that point yet. One bad fill-up can sour someone’s view of the entire platform.”
The price of faith in an idea
Ricky Yap of West Sacramento bought his 2016 Toyota Mirai in 2020 from Roseville Toyota. The vehicle, priced at $16,000, came with a prepaid fuel card worth the same amount. Initially, the fueling experience was “a bit cumbersome and confusing but not so bad,” Yap told the Bee. Then things got a lot worse.
Shell’s closure of hydrogen stations led to long lines at the only remaining site in Sacramento. Hydrogen prices soared, and fueling, thanks to long lines at the station, ended up taking as long as four hours. Yap eventually stopped using the car altogether. He canceled the insurance and registered it as a non-operational vehicle.
“I used it very seldom just because of the fact I don’t like the stress,” he said. “I don’t want to pay insurance on a car that I can’t use every day.”
The lawsuit claims that Toyota and its partners misled consumers about the viability of the hydrogen ecosystem. Many owners were driven by environmental motivations, enticed by generous incentives and Toyota’s reputation. But the resale value of hydrogen cars has collapsed.
One plaintiff, Parita Shah, a physician assistant from Sacramento County, told the Bee that her dealership offered her only $2,000 for her $36,000 Mirai after stations near her home shut down just months after purchase.
Consumers’ legal action turns up the pressure
In July 2025, frustrated Mirai owners organized a demonstration in Los Angeles to draw attention to what they called a broken promise. Protesters held signs reading “Mirai is a Lie,” “Toyota Made a Big Mistake,” and “Mirai Left Me Dry.”
Jason Ingber, attorney for D’Anna, Yap, and several other Mirai owners, spoke at the event. He accused the automaker of knowingly selling a product into a failing infrastructure.
“These are brands they thought they could rely on, and they go in, and they’re told ‘This is the next best thing!’ and it turns out, it’s not,” Ingber told KTLA 5.
Ingber also shared a comment to Teslarati: “Toyota is still selling this car. It makes no damn sense. No fuel for drivers. The car doesn’t work as advertised,” he said.
Automakers offer limited relief
Toyota has acknowledged the fueling issues and confirmed that it stopped selling new Mirais in the Sacramento area over a year ago. In a statement to the Bee, the company said it is “working with affected Mirai customers to identify ways to help them on a case-by-case basis.”
Rental cars and service credits are among the remedies offered, but plaintiffs argued that these are not sustainable solutions. Shah stated that the rental process is quite cumbersome. In her case, she has been relying on a series of short-term rental cars provided by Toyota, which she must exchange every 25 days. She continues to make $326 monthly payments on he Mirai, which she cannot use.
Hyundai, whose Nexo SUV also relies on hydrogen fuel, has offered similar 21-day rental options. The company also issued a recall for about 1,600 Nexo SUVs in late 2024 due to possible hydrogen leaks and potential fires, warning owners to park their cars outside until repairs were made.
A shrinking market
Since 2012, just under 18,000 hydrogen-powered vehicles have been sold in California. Toyota accounts for the vast majority of them, but the pace of adoption has slowed dramatically. For comparison, California now has millions of battery electric and hybrid vehicles on the road.

Policies have also seen a notable shift. California initially committed about $20 million annually to develop hydrogen fueling infrastructure. That number has since dropped to $15 million, and it’s no longer limited to light-duty stations.
Josh Newman, a former state senator and current Mirai owner, told the Bee that government support has fallen short. “I blame the state. We were supposed to have 200 stations up and running for light-duty hydrogen vehicles by 2025,” he said.
In a statement to Teslarati, Alex Black, Chief Marketing Officer at EpicVIN, said the problem now extends beyond infrastructure. “Yes, hydrogen cars do have an image problem right now,” he said.
“Many just do not have confidence in the technology, largely because they have not seen very many out there, there are not many places to fill them up, and have heard about previous recall problems or problems. That tends to stick with them.”
Black added that public sentiment plays a powerful role. “When public sentiment turns, all activity comes to an end: reduced demand, reduced investment, and fewer stations are built. It’s a vicious circle.”
A clean tech cautionary tale
Toyota’s investment in hydrogen was bold and well-intentioned. The technology offers apparent advantages, especially for long-haul or commercial use cases where quick refueling and long range are critical. But for personal mobility, hydrogen’s future remains uncertain, if not questionable, today.
The technology may still find its place in transportation. But for now, at least, consumer trust in hydrogen vehicles has been undermined, and infrastructure is still unreliable for those who have opted to become early adopters of the technology. For those who bought into the vision early, the experience has turned into a cautionary tale.
“People want something they can rely upon,” said Black in his statement to Teslarati. “And they want it to be easy. Hydrogen is not quite there yet.”
For Mirai owners still making monthly payments on cars they cannot drive, the idea of a hydrogen powered future is very sobering.
News
Tesla’s Robotaxi geofence in Austin grows, and its shape is hard to ignore
The expansion stayed true to Elon Musk’s rather lighthearted and juvenile humor at the same time.

Tesla has rolled out an expanded geofence for its Robotaxi pilot program in Austin, Texas. With the expansion, the Robotaxi’s geofence now rivals Waymo’s service area, while staying true to Elon Musk’s rather lighthearted and juvenile humor at the same time.
New Robotaxi geofence expansion
Elon Musk actually announced the expansion of the Robotaxi service’s Austin geofence last week, with the CEO stating that the company is expanding its coverage in the city over the weekend. At the time, Musk also mentioned that Tesla would be looking to launch its Robotaxi service in the Bay Area in a month or two.
Sure enough, there were no delays with the Austin Robotaxi expansion’s rollout. On Sunday, electric vehicle owners reported on social media that their Robotaxi apps have been updated with a much larger geofence. The rates of the Robotaxi service was reportedly still kept at a flat rate of $4.20 per ride.
Industry watchers also observed that with Tesla’s newest update, the Austin Robotaxi program now operates in an area that is quite comparable to Waymo’s. During the initial launch of Austin’s Robotaxi service, critics were keen to point out that Tesla’s operational area was notably smaller than Waymo’s geofence.
New shape pisses off critics, makes fans laugh
The fact that Tesla was able to expand its Robotaxi service’s operational area in Austin over the weekend is undoubtedly impressive. In true Elon Musk fashion, however, it also ended up pissing off critics because Tesla’s geofence in Austin is now shaped like a phallus—intentionally.
This was something that was suggested by TSLA retail investor Steve Mark Ryan as a joke, but in true Tesla spirit, the company did just that. It’s a classic Tesla move if one were to think about it.
Elon Musk and the Tesla team are keen to play around the joke too, with Musk posting on X that the Robotaxi service is now “bigger, longer, and uncut.” The official Robotaxi service’s X account, on the other hand, also wrote that its new service area is “harder, better, faster, stronger.”
Elon Musk
Elon Musk teases Tesla’s “most epic demo” by end of year
Musk posted his update on social media platform X.

Tesla CEO Elon Musk has teased what could very well be one of the electric vehicle maker’s most important events. As per the CEO, Tesla will be holding its most epic demo yet by the end of the year.
Musk posted his update on social media platform X.
Tesla’s most epic demo
Musk has been active on X this weekend, and on Sunday night, the CEO mentioned that he just left the Tesla Design Studio in Hawthorne, California. He seemed impressed with what he saw at the site, as he noted that the company will hold an impressive demonstration at the end of the year.
“Just left the Tesla design studio. Most epic demo ever by one of year. Ever, Musk wrote in his post.
Musk’s post was received with much anticipation from the electric vehicle community, many of whom speculated that the company may finally be ready to take the wraps off the production version of a long-awaited flagship product.
Possible new flagship?
When Tesla unveiled the Semi in late 2018, the company also unveiled the next-generation Roadster, which was designed to be the company’s halo vehicle. The Semi has since entered limited production and is now being used by both Tesla and select clients, but the Roadster remains under wraps. Considering that Musk mentioned the Tesla Design Studio in his recent post, some Tesla fans are speculating that the company may finally be unveiling the production version of the next-generation Roadster.
Tesla, after all, has been overtaken in the raw EV power, range, and speed game by competitors, with vehicles like the Lucid Air Sapphire and the Xiaomi SU7 Ultra beating the company’s fastest car today, the Model S Plaid, in raw numbers. Tesla could then use the Roadster to reestablish itself as the leader of the electric vehicle pack, raw numbers and tech or otherwise.
News
SpaceX to invest $2 billion in Elon Musk’s xAI: report
The $2 billion injection is reportedly part of a broader $5 billion equity raise for xAI announced by Morgan Stanley last month.

SpaceX is investing $2 billion into Elon Musk’s artificial intelligence startup, xAI, marking one of the private space company’s largest-ever financial commitments to another firm.
News of the investment was initially posted by The Wall Street Journal.
xAI integration
The $2 billion investment is reportedly part of a broader $5 billion equity raise for xAI announced by Morgan Stanley last month. As per investors reportedly familiar with the matter, this is SpaceX’s first known investment in xAI. The AI startup was recently merged with X, Musk’s social media platform, in a deal that valued the combined entity at $113 billion.
Musk has mobilized several of his companies to support xAI’s growth. In addition to Grok being embedded in X, it now powers support functions for SpaceX’s Starlink satellite internet service, the WSJ noted. Tesla has also started integrating Grok on its new vehicles. Musk has stated that Grok will be used with Tesla’s humanoid robot, Optimus, as well.
SpaceX investments
The investment highlights Musk’s ambitions to position xAI as a major competitor to rivals such as OpenAI. Grok 4, launched earlier this week, received strong benchmarking scores, with Musk calling it the “world’s smartest artificial intelligence.” So far, xAI’s performance boost with Grok 4 has earned praise from AI-benchmarking firms, such as Artificial Analysis.
SpaceX, which had more than $3 billion in cash as per a previous WSJ report, is typically very conservative with external investments. One of its few past acquisitions was a $524 million deal for Swarm Technologies, a satellite-communications firm, in 2021. Musk has also tapped into SpaceX resources to support his other ventures, including Tesla and The Boring Company.
In a recent comment on X, Elon Musk acknowledged that it would be great if Tesla could invest in xAI as well, though doing so would be subject to Board and shareholder approval.
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