News
Details behind Model X owner’s $5M+ class action lawsuit against Tesla
Following our report that a Model X owner has filed a class action law suit against Tesla, claiming a widespread defect in the vehicle’s onboard software causes sudden unattended acceleration (SUA), new details behind the suit have been obtained by Teslarati that shows a legal team aggressively targeting the core component to the Silicon Valley-based electric car maker’s fleet of vehicles.
The class action filed in federal district court claims Ji Chang Son – Korean star residing in Orange County, Calif. – crashed through his garage and into the living room of his home after his Tesla Model X accelerated suddenly and without warning on September 10, 2016, approximately one month after Mr. Son took delivery of the electric SUV. The suit claims that “Tesla has failed to properly disclose, explain, fix, or program safeguards to correct the underlying problem of unintended acceleration”, adding that “over sixteen thousand Model X owners with vehicles that could potentially accelerate out of control.
Son’s attorneys gave the court a full account of the development of the Model X, focusing on the company’s claim that the Model X is “the safest, fastest and most capable sport utility vehicle in history.” On the contrary, according to Son’s attorneys. They allege the Model X has a safety defect that permits the car to accelerate at full speed directly into solid objects, such as the exterior wall of Son’s home. In particular, they point out that 8 written complaints have already been filed with the National Highway Transportation Safety Administration from other Model X owners who report similar occurrences while driving their cars.
The lawsuit reads,
“Irrespective of whether the SUA events in the Model X are caused by mechanical issues with the accelerator pedal, an unknown failure in the electronic motor control system, a failure in other aspects of the electrical, mechanical, or computer systems, or some instances of pedal misapplication, the Model X is defective and unsafe. Tesla’s lack of response to this phenomenon is even more confounding when the vehicle is already equipped with the hardware necessary for the vehicle’s computer to be able to intercede to prevent unintended acceleration into fixed objects such as walls, fences, and buildings.
Despite repeated instances of Model X drivers reporting uncommanded full power acceleration while parking, Tesla has failed to develop and implement computer algorithms that would eliminate the danger of full power acceleration into fixed objects.This failure to provide a programming fix is especially confounding for a vehicle that knows when it is located at the driver’s home and is being parked in the garage, yet carries out an instruction, regardless of whether through an error by the vehicle control systems or by driver pedal misapplication, to accelerate at full power into the garage wall.
Further, not only has Tesla failed to fix the problems, it has chosen instead to follow in the footsteps of other automobile manufacturers and simply blame the driver.”
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One problem, according to Son’s attorneys, is the software that controls the Automatic Emergency Braking system. Tesla has programmed that feature to disengage in order to allow drivers to make emergency maneuvers, “in situations where you are taking action to avoid a potential collision. For example:
- You turn the steering wheel sharply.
- You press the accelerator pedal.
- You press and release the brake pedal.
- A vehicle, motorcycle, bicycle, or pedestrian, is no longer detected ahead.”
In other words, say the attorneys, a Model X will drive straight into a solid wall if that is what the system thinks the driver wants it to do. “Apparently, this includes situations where the computer believes, rightly or wrongly, that the driver is commanding full power acceleration directly into fixed objects immediately in front of the vehicle.”
Class action lawsuits are complex and highly specialized legal actions. Federal law requires that the damages alleged for the entire class exceed $5 million. The plaintiff’s attorney have done so by claiming that Tesla is aware of at least two other instances in which drivers allege sudden unintended acceleration occurred while driving their Model X at low speeds. They then extrapolate those numbers to suggest that the rate of SUA incidents attributable to the Model X is 64 per 100,000 vehicles — substantially higher than for any other vehicle in history.
Page 12 of JI CHANG SON vs. TESLA MOTORS class action complaint
They point out that the incidence rate of SUA incidents for Toyota vehicles — which grabbed national headlines in 2010 — was far lower. They then go on to remind the court that Toyota paid several hundred million dollars to SUA victims as well as a $1.2 billion federal fine. Notice that the chart included in the pleadings shows an exaggerated and disproportionate projected SUA incidence rate for the Model X highlighted in bright red.
Tesla says its data retrieved from the vehicle’s blackbox shows the accelerator in Son’s Model X was fully depressed when the accident occurred. The question for the court will be whether the driver pressed the wrong pedal or whether the vehicle accelerated on its own. It is unclear whether a software failure would register the pedal as fully depressed even if it was not physically operated by the driver.
Plaintiffs always have the burden of proving their allegations. Attorneys for injured parties often rely on a legal doctrine known as res ipsa loquitur, which is Latin for “the thing speaks for itself.” Loosely translated, it means “we don’t know what is wrong with your product that you designed and built, but you know or should know.” Res ipsa loquitur shifts the burden of proof onto the defendant, which makes it much easier for a plaintiff to prevail in court.
One advantage the plaintiff gains from filing suit is the ability to discover what information Tesla has that is not yet public. Does Tesla know something it isn’t telling its customers? We may find out as this litigation goes forward.
We’ve provided a copy of the entire class action filing below.
[pdf-embedder url=”http://www.teslarati.com/wp-content/uploads/2017/01/Son-vs-Telsa-class-action-8-16-cv-2282.pdf”]
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Elon Musk
The Boring Company’s newest tunnel vehicle runs on Tesla parts and no one is driving it
The Boring Company’s new tunnel vehicle runs on Tesla Model 3 batteries and drive units.
The Boring Company just introduced a new piece of hardware, and it runs on parts pulled straight from a Tesla showroom. Liner Truck 3, unveiled in a post from the tunneling company’s official X account, is an all electric vehicle built around Tesla Model 3 battery packs and drive units, purpose built to move concrete tunnel segments to the boring machine face without a single person underground.
Introducing Liner Truck 3 — our latest fully electric tunnel vehicle.
– Tesla Model 3 battery and drive units
– Transports 22,000+ lb of concrete segments to the boring machine
– 28 miles of range
– 12 mph max operating speed
– Remotely piloted from Global OCC in Texas, with… pic.twitter.com/XB7FgSXnpy— The Boring Company (@boringcompany) August 7, 2026
The job itself is unglamorous but critical. Each precast segment run weighs more than 22,000 pounds, roughly the load of a full cement mixer, and Liner Truck 3 hauls that weight repeatedly between the surface staging area and wherever the Prufrock machine happens to be cutting.
The Boring Company said Liner Truck 3 is piloted remotely out of its Global Operations Control Center in Texas, extending the Zero-People-In-Tunnel approach the company has spent years building toward. An earlier version of a ZPIT liner truck was already tested at the company’s Bastrop, Texas research tunnels, and a factory tour released last month showed an employee flying a fully loaded liner truck with a PlayStation controller. Liner Truck 3 looks like the production version of that same idea, cleaned up and pushed into daily use.
The timing lines up with a company digging in more places than it ever has before. The Boring Company now has multiple Prufrock machines active or arriving in Nashville, where Music City Loop construction has been accelerating since February, and its Vegas Loop network keeps adding tunnel mileage on a near monthly basis. Every one of those projects depends on getting concrete segments to the cutting face fast enough to keep the boring machine from idling, which is exactly the bottleneck Liner Truck 3 is designed to remove.
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It also reinforces something Tesla owners have watched happen gradually across Musk’s companies: passenger car hardware finding a second life in heavy equipment. Model 3 drive units already move people through the Vegas Loop, and now the same components are hauling concrete underground in Nashville and wherever The Boring Company digs next. Whether that kind of component reuse extends further into TBC’s equipment lineup, or into other Musk owned industrial hardware, is the next thing worth watching.
SpaceX stock did the opposite of what most of Wall Street expected this week, when the day designed to be its most dangerous turned into a rally, and the rally kept going.
Thursday marked the first major lockup expiration since SpaceX’s June IPO, making roughly 911.5 million insider held shares eligible to trade for the first time, more than doubling the company’s public float. Analysts and short sellers had spent weeks bracing for a flood of selling, especially after the stock fell 13 percent following its first earnings report as a public company on Tuesday. Instead, shares rose 6.1 percent Thursday to close at $114.92, and by Friday they were trading near $129, up more than another 12 percent on the day.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
The setup made the outcome notable. Short interest had climbed to roughly 34 percent of the float heading into earnings, among the highest of any large cap stock, with about 95 percent of available shares to borrow already on loan. CEO Elon Musk warned short sellers twice in the weeks before the lockup, writing on X that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” then following up on the morning of earnings with “I try to warn them, but they just double down.”
When the newly unlocked shares hit the market and the selloff never showed up, some of that short position appears to have started unwinding. TipRanks reported that options activity shifted toward bullish strategies like put selling and risk reversals following the rally, with roughly $600 million in options premium trading Thursday alone. Retail buyers also stepped in during the earnings dip, according to Vanda Research.
The fundamentals behind the stock have not changed much in a week. SpaceX’s revenue nearly doubled year over year to $7.8 billion, with Starlink subscribers doubling to 12 million and the company’s AI segment growing 247 percent. What spooked investors on Tuesday was the spending side. Capital expenditures jumped to more than $18 billion for the quarter, up from $2.8 billion a year earlier, with AI investment alone rising from $749 million to $15.8 billion. Wall Street remains split on whether that spending is building infrastructure SpaceX needs or outrunning what the business can currently support, a debate Teslarati has tracked since shares first came under pressure.
None of that resolves the bigger question hanging over the stock. Thursday’s release was only the first of nine staggered lockup tranches, with roughly $800 billion worth of additional shares scheduled to become eligible through October, and Musk’s own stake stays locked until next June. If this week is any indication, the market is treating that supply as something it can absorb rather than something to fear, at least for now.
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News
The Boring Company’s newest Vegas Station has a permit quietly waiting behind it
Sahara Las Vegas opened a new Vegas Loop station, joining an exclusive two resort transit club.
Sahara Las Vegas opened a new Vegas Loop station Thursday, giving The Boring Company’s underground transit system its northernmost stop yet on the Strip. The station sits at Sahara’s Paradise Road entrance, on the southeast corner of Las Vegas Boulevard and Sahara Avenue, and connects riders to the Las Vegas Convention Center, other Strip resorts on the network and, eventually, Harry Reid International Airport.
The addition makes Sahara the second resort, after Fontainebleau opened its own station in January, to get a stop built at street level rather than tucked into the property itself. Sahara now joins Westgate as the only two Strip resorts offering both a Vegas Loop station and a stop on the Las Vegas Monorail, giving guests two separate ways to get around without leaving the property.
The Boring Company just doubled its tunneling power in Nashville
The bigger news buried in Thursday’s announcement is what comes next. Boring Company has already secured its first permit to tunnel north of Sahara Avenue, extending the network beyond where it currently ends, even though permits to push the Loop toward downtown Las Vegas still haven’t been granted. Crews are also working on a two mile dual tunnel line running from Westgate to a planned station at 4744 Paradise Road, just north of Tropicana Avenue, that Las Vegas Convention and Visitors Authority CEO Steve Hill has said the company hopes to open in time for November’s Las Vegas Grand Prix.
Ridership has grown alongside the buildout. The Loop moved roughly 82,000 passengers during CONEXPO in early March, a total the company highlighted on its own X account at the time, and the system has now carried more than 4 million passengers through 11 open stations since it began running in 2021. The airport connector tunnels, meant to give the Loop a direct link to Harry Reid, have slipped past their original first quarter target and remain under construction, with Boring Company director Mike Baier saying that a full opening is still a few months out.
For Sahara, the calculation is straightforward. Convention traffic drives a large share of Loop ridership, and a station at the property’s front door gives conventiongoers one more reason to book rooms on the Strip’s north end instead of closer to the convention center itself.
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The Boring Company’s newest tunnel vehicle runs on Tesla parts and no one is driving it
Elon Musk and SpaceX shrugs off the trading day Wall Street feared most
