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Tesla, Elon Musk seek dismissal in lawsuit alleging fraud and defamation

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Tesla and Elon Musk, jointly named as Defendants with Omar Qazi of the former @tesla_truth Twitter account, have filed a Motion to Dismiss an ongoing lawsuit brought by Plainsite.com owner Aaron Greenspan.

Greenspan, a Tesla short seller often associated with the online “$TSLAQ” community, is seeking an injunction and damages from alleged libelous activity by both Qazi and Musk. He also claims fraudulent communications by Musk and Tesla executives have lead to inflated company stock prices, thereby injuring his financial portfolio via stock purchases made and sold based on those communications. Tesla’s and Musk’s motion for dismissal was made as a separate action from the allegations against Qazi.

The Complaint, initially filed May 20, 2020, and later amended on July 2, 2020, is being litigated in the US Northern District of California, San Francisco Division under docket number 3:20-cv-03426-JD. The Motion to Dismiss was filed on July 31, 2020.

Tesla exhibits its electric cars and energy products at the 2018 LA Auto Show. [Credit: Christian Prenzler/Teslarati]

“Plaintiff’s allegations against the Tesla Defendants are not new. Plaintiff has been making the
same unsubstantiated and incendiary accusations—on Twitter, in purported online exposés, and in public and private communications—for years. What is new is Plaintiff’s attempt to transform his conspiracy theories, baseless suspicions, and Internet “research” into a federal lawsuit,” Tesla’s Motion argues against Greenspan’s claims. “Also new is Plaintiff’s apparent view that people should not use hyperbolic language or return his insults on the Internet, and Plaintiff’s claim that Mr. Musk’s dismissive commentary to and about him somehow damaged his reputation.”

The Complaint partly seeks to hold Musk liable for several statements made by Qazi during publicly-aired disagreements with Greenspan, characterizing the CEO’s positive replies to some of Qazi’s online posts as part of a “tag team” effort to discredit him. However, Tesla argues that liability would require a formal agent-type relationship between Qazi and Musk to hold legal weight. “While the [First Amended Complaint] speculates about ties between Mr. Qazi and Mr. Musk, Plaintiff tacitly admits he is not aware of such a relationship, other than alleged interactions on Twitter and in the media,” the Motion argues. Greenspan also cites Qazi’s attendance at a private Tesla event as evidence of an implied connection or common purpose with Musk.

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Regarding any defamation claims, substantiated by Greenspan using email replies from Musk as well as Twitter comments in reply to a published article wherein derogatory remarks were made about Greenspan, Tesla’s Motion argues such comments are constitutionally protected opinions. Of particular note in the Complaint’s allegations is a supportive email to Twitter CEO Jack Dorsey sent by Musk purportedly in support of restoring Qazi’s suspended accounts.

“Jack, what Omar is saying is accurate to the best of my knowledge. There has been an
orchestrated and sophisticated attempt to drive down Tesla stock through social media,
particularly Twitter,” Musk wrote.” This always increases around our earnings call, which is this
afternoon. Aaron Greenspan in particular has major issues. He’s the same nut but that claimed he was the founder of Facebook and sued Zuckerberg, among many other things. Never seen anything like it.”

In reference to this cited correspondence, Tesla argues, “As with his other statements, Mr. Musk’s reference to Plaintiff as a “nut but” with “major issues” is nonactionable opinion.”

Tesla Short Shorts (Credit: Tesla)

Most of the all-electric carmaker’s reply in the Motion, though, was focused on a legal defense against the most prevalent claims the Tesla short seller community is most vocal about: The company’s stock prices are artificially inflated due to fraudulent communication regarding their activities.

“As numerous courts have recognized, however, short sellers like Plaintiff…[sell] short because he believes the price of a stock overestimates its true value…whereas the premise of the fraud-on-the-market presumption is that investors rely on the market to reflect a stock’s true value,” Tesla states in their dismissal petition. “Plaintiff does not and could not claim that he relied on any alleged false statements because he believed that Tesla was engaged in fraud during the entire time he was betting against the Tesla stock… Even if Plaintiff could invoke the fraud-on-the market presumption, it would be conclusively rebutted because the Plaintiff plainly…would have bought or sold the stock even had he been aware that the stock’s price was tainted by fraud.”

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Ultimately, Greenspan is seeking a declaratory judgment holding Qazi in contempt of court, a permanent injunction preventing further libelous statements against Greenspan in any published medium (written or oral), damages from Defendants’ alleged fraudulent actions to be assessed at time of trial, statutory damages from copyright infringements (over personal photos used as described in the suit), and punitive damages for alleged law breaking. Tesla and Musk, for their part, are seeking to have the case dismissed permanently, i.e., “with prejudice.”

For the average Tesla fan, owner, or stock holder, lawsuits may seem like something to avoid at (nearly) all costs, but Musk does not give the impression he has the same hesitation. The eccentric CEO makes his opinion of short sellers like Greenspan known quite often, and he has even humorously merchandised his ongoing battle by selling bright red “Short Shorts” donning the Tesla logo on the company web store.

With Tesla stocks recently haven risen to a high of $1643 per share, the tensions between the camps will perhaps only continue to rise.

Tesla Motion to Dismiss, Aaron Greenspan by Teslarati on Scribd

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Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

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Elon Musk has generous TSA offer denied by the White House: here’s why

Musk stepped in on March 21 via a post on X, writing: “I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country.”

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Tesla and SpaceX CEO Elon Musk made a generous offer to pay the salaries of Transportation Security Administration (TSA) employees last week, but the offer was denied by the White House.

In a striking display of private-sector initiative clashing with federal bureaucracy, the White House has turned down an offer from Elon Musk to personally cover the salaries of TSA officers amid an ongoing partial government shutdown. The rejection, reported last Wednesday by multiple outlets, highlights the legal and political hurdles facing unconventional solutions to Washington’s funding gridlock.

The impasse began weeks ago when Congress failed to pass funding for the Department of Homeland Security (DHS), leaving TSA employees, essential workers who screen millions of travelers daily, without paychecks while still required to report for duty.

Frustrated travelers have endured record-long security lines at major airports, with reports of chaos and delays rippling across the country.

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Musk stepped in on March 21 via a post on X, writing: “I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country.”

But it was not for no reason.

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White House spokesperson Abigail Jackson responded on behalf of the Trump administration, expressing appreciation for Musk’s gesture.

However, the legal obstacles, which would be insurmountable, would inhibit Musk from doing so. Jackson said:

“We greatly appreciate Elon’s generous offer. This would pose great legal challenges due to his involvement with federal government contracts.”

Musk’s companies hold significant federal contracts, including NASA launches through SpaceX and potential Defense Department work, raising concerns about conflicts of interest, ethics rules, and anti-bribery statutes that prohibit private payments to government employees. Administration officials also indicated they expect the shutdown to end soon, making external funding unnecessary.

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The episode underscores deeper tensions in Washington. Musk, who has advised on government efficiency efforts and maintains a close relationship with President Trump, has frequently criticized wasteful spending and bureaucratic delays.

His offer came as airport security lines ballooned, drawing public frustration toward both parties. TSA officers, many of whom rely on paychecks to cover mortgages and family expenses, have continued working without compensation, a situation that has drawn bipartisan concern but little immediate resolution.

Critics of the rejection argue it prioritizes red tape over practical relief for frontline workers and travelers. Supporters of the White House position counter that allowing private funding sets a dangerous precedent and could undermine congressional authority over the budget.

The White House eventually came to terms with the TSA on Friday and started paying them once again, and lines at airports instantly shrank.  The Department of Homeland Security (DHS) said that TSA staf would begin receiving paychecks “as early as” today.

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Tesla FSD mocks BMW human driver: Saves pedestrian from near miss

Tesla FSD anticipated a BMW driver’s lane drift before the human behind the wheel could react.

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A video posted to r/TeslaFSD this week put a sharp spotlight on Tesla’s Full Self-Driving (FSD) software being able to react to pedestrian intent than an actual human driver behind the wheel. In the Reddit clip, a BMW driver can be seen rolling through a neighborhood street completely unaware of a pedestrian stepping in to cross. At the same time, a Tesla  driving on FSD had already begun slowing down before the pedestrian even began their attempt to cross the street The BMW kept moving, prompting the pedestrian to hop back, while the Tesla came to a stop and provide right-of-way for the human to safely cross.

That gap between what the BMW driver saw and what FSD had already processed is the story. Tesla FSD wasn’t reacting to a person in the street, rather it was reading the signals that a person was about to enter it based on the pedestrian’s movement, trajectory, and their trajectory to telegraph intent.

Tesla’s FSD is now built on an end-to-end neural network trained on billions of real-world miles, learning to interpret subtle human behavioral cues the same way an experienced human driver does instinctively. The difference is consistency. A human driver distracted for two seconds misses what FSD does not.

Tesla sues California DMV over Autopilot and FSD advertising ruling

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Reddit commenters in the thread were blunt about the BMW driver’s failure, with several pointing out that the pedestrian was visible well before the crossing. One response put it plainly that the car on FSD saw the situation developing before the human in the other car had registered there was a situation at all.

Tesla has published data showing FSD (Supervised) is 54% safer than a human driver, accumulated across billions of miles driven on the system. Elon Musk has said FSD v14 will outperform human drivers by a factor of two to three, and that v15 has “a shot” at a 10x improvement. Pedestrian safety is where the stakes are highest, and where intent prediction closes the gap fastest. At 30 mph, a car covers roughly 44 feet per second. An extra second of awareness from reading a person’s body language rather than waiting for them to step out is often the difference between a near miss and a fatality.

Video and community discussion: r/TeslaFSD on Reddit

FSD saves man from becoming a pancake. BMW driver nearly flattens him.
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Tesla Robotaxi gets a small but significant change

In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.

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Credit: David Moss | X

In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.

Last week in downtown Austin, sharp-eyed observers spotted a subtle but telling evolution on the Cybercab: a new “ROBOTAXI” logo graphic now graces the vehicle’s doors at Tesla’s Autonomy Popup.

What looks at first glance like a minor stylistic choice is, in fact, a deliberate rebranding move that hints at how the company envisions its robotaxi fleet fitting into everyday life.

The updated lettering is bold, graffiti-inspired, and unapologetically street-smart. Rendered in black with dripping white accents and a glowing yellow outline, the font evokes urban energy and playful irreverence.

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Gone is the sleek, minimalist typography that defined earlier Cybercab prototypes. In its place is something more human, almost rebellious.

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The new logo pops against the Cybercab’s smooth, metallic body, turning the autonomous pod into a rolling piece of public art rather than just another futuristic taxi.

Designers know that fonts are silent brand ambassadors. They shape perception before a single ride is taken. Tesla’s classic sans-serif aesthetic screams precision engineering and Silicon Valley cool.

The new Robotaxi script leans into accessibility and fun, suggesting the vehicle is approachable, not intimidating. For a product meant to ferry strangers through city streets 24/7, that matters. It signals that the robotaxi isn’t reserved for tech elites; it’s for everyone.

Tesla Cybercab spotted next to Model Y shows size comparison

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The timing is no accident. With regulatory approvals for unsupervised autonomy advancing and Tesla preparing to scale Cybercab production, the company is shifting from prototype showcase to fleet deployment.

A fresh logo helps differentiate the vehicles visually in dense urban environments—crucial for rider recognition and brand recall. It also aligns with Elon Musk’s long-standing ethos: make the future feel exciting, not sterile.

Small changes like this often foreshadow a larger strategy. Tesla has always obsessed over details—door handles, screen interfaces, even the curvature of a steering wheel.

Updating the Robotaxi font reflects the same meticulous care now applied to consumer-facing autonomy. It’s not just paint on metal; it’s a statement that the ride of the future should feel personal, memorable, and undeniably cool.

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In an industry racing toward self-driving fleets, Tesla’s willingness to evolve even the smallest visual cues shows confidence. A font won’t launch the robotaxi network, but it might just help millions climb aboard with a smile.

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