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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 exposĂ©s, 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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Tesla expands Robotaxi to Florida, marking its third state for autonomy

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Credit: Tesla

Tesla has expanded its Robotaxi program to Miami, Florida, marking the third state the autonomous ride-hailing platform has made its way to since launching last Summer.

Tesla announced today that the Robotaxi suite would now officially launch rides in a geofence in Miami:

The first geofence in Miami covers approximately 10 to 14 square miles. The area appears to be focused on western and central Miami, including Miami International Airport (MIA). It also includes popular routes like SR 826 (Palmetto Expressway), US 41 (Tamiami Trail), and connectors such as SR 968, 953, 959, and 972.

This is Tesla’s initial Miami launch zone, smaller and more targeted than some competitors’ areas (for example, Waymo’s initial rollout was broader in eastern neighborhoods). It prioritizes high-traffic, airport-linked routes before wider expansion.

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The expansion is a huge signal for Tesla that it is now operating in Florida, a heavy-traffic state with many tourist areas, including Fort Lauderdale, Palm Beach, and the Boynton area, all of which are coastal and will attract perhaps millions of tourists in any given year.

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The Tesla Robotaxi network launched last year on June 22, in Austin, Texas, beginning limited commercial operations in that city. It expanded shortly thereafter into the San Francisco Bay Area of California in late July 2025, marking entry into a second state with service covering key areas such as San Francisco, San Jose, and Berkeley.

Full commercial service was achieved in Austin by November 18, 2025, strengthening its presence within Texas before further growth.

In 2026, the network continued expanding across Texas with the addition of Dallas and Houston on April 18, significantly broadening its footprint in the state. This new launch into Miami marks Tesla entering a new state and bringing active locations to include Austin, Dallas, Houston, San Antonio in Texas, and the Bay Area in California.

These sequential expansions have steadily increased the network’s reach across major metropolitan areas in Texas, California, and Florida, focusing on scaling operations city by city and state by state since the initial Austin debut.

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Elon Musk outlines Tesla Optimus production expectations

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Credit: Grok Imagine

Tesla CEO Elon Musk has tempered expectations for the company’s humanoid robot Optimus, emphasizing that initial production will ramp up slowly despite recent progress on the manufacturing line. In a July 1 reply on X, Musk responded to optimistic community speculation by stating, “No, Optimus production will be extremely slow at first, as everything is new. This is not like making a car.”

The comment came in response to a post theorizing that Tesla had accelerated Optimus V3 development and might soon unveil an impressive demonstration with multiple units already in meaningful production. Musk’s clarification highlights the fundamental differences between scaling a novel humanoid robot and Tesla’s established automotive operations, which benefit from over a century of refined supply chains, tooling, and processes.

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Recent updates show tangible advancement. Musk shared a photo of himself walking the Optimus production line at Fremont, where Tesla is converting former Model S/X manufacturing space. According to Q1 2026 earnings commentary, limited production is slated to begin in late July or August 2026 on this converted line.

Tesla Optimus project fires up as Musk sees production line progress

Musk previously noted that Optimus features roughly 10,000 unique parts, making early output rates “literally impossible to predict” and describing them as “quite slow.” A larger dedicated factory at Giga Texas is under construction, targeting higher-volume production around summer 2027 with long-term annual capacity potentially reaching millions of units.

Some experts point out that pioneering humanoid robotics demands inventing new automation techniques, actuator supply chains, and quality-control standards in real time. Unlike vehicles, where components and assembly methods are mature, every element of Optimus—from dexterous hands to AI-integrated movement—requires fresh engineering solutions. Early units are expected to handle simple factory tasks before expanding to more complex roles.

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This cautious approach aligns with Tesla’s history of under-promising and over-delivering on complex technologies. While enthusiasts hoped for rapid deployment, Musk’s message underscores a deliberate strategy: prioritize reliability and iterative improvement over rushed volume.

Analysts suggest the S-curve ramp typical of new manufacturing will eventually accelerate once foundational issues are resolved, positioning Optimus as a potential trillion-dollar product line.

Musk has long envisioned Optimus transforming labor markets, assisting in homes, factories, and hazardous environments. By setting realistic timelines, Tesla aims to build sustainable momentum rather than risk disappointment. As the Fremont line comes online this summer, investors and fans will watch closely for the first production metrics and capability demonstrations.

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Tesla brings Model Y L ‘Launch Series’ to the U.S. at $61,990

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Tesla has officially launched the Model Y L in the United States and Puerto Rico for $61,990. It is the longer-wheelbase version of the Model Y, and has been available in China since last year.

Tesla brings the Model Y L to the U.S. just months after it phased out the only pure SUV in its lineup, the Model X. It is slightly longer than the Model Y configurations that are already available in the U.S., and features a three-row, six-seat setup with Captain’s Chairs being among the many features that make this a truly fantastic offering.

The Model Y L is priced competitively at $61,990, and features 325 miles of range and a 0-60 MPH in just 4.4 seconds.

Tesla also added a handful of new features that are not available in even the Premium Model Y. Here’s a full list of its features:

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  • Heated/Ventilated Front Seats with Powered Thigh Cushion
  • Heated/Ventilated Captain’s Seats in Second Row with Powered Armrests & One-Touch Fold
  • Heated Third-Row Seats with Power Recline, One-Touch Fold & Child Seat Anchors
  • Improved Airflow, Increased Efficiency, More Range
  • 89 cubic feet of trunk space
  • Upgraded Acoustic Glass and Suspension to Minimize Road Noise
  • Adaptive Damping for a Smooth, Stable Ride
  • Staggered Tires for Enhanced Grip
  • Larger Tailgate for Better Rear Visibility and Bigger Windows Overall
  • 16″ First Row and 8″ Second Row Touchscreens
  • 19-Speaker Immersive Tesla Audio
  • 50W Wireless Charging Pads with Active Cooling and Charging Ports for All Other Seats
  • FSD Supervised and Integrated Grok AI

Tesla is also delivering these first units as a “Launch Series,” which comes with additional features, such as:

  • Door Trim Puddle Lights
  • Suede Dashboard Wing
  • Exterior and Interior Badging
  • Floor Mats
  • Sill Plates

The launch of the Model Y L in the U.S. marks a huge offering from Tesla to U.S. consumers. People have been calling for Tesla to bring a larger car to the U.S., and it needed it more than ever now that the Model X is gone.

It is a huge accomplishment for Tesla to get the Model Y L to the U.S., and after reporting strong deliveries today, it will be interesting to see how this car impacts future quarterly delivery reports.

Deliveries for the Model Y L “Launch Series” are slated for September or October of this year.

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