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Tesla fires back at new class-action suit that alleges “inoperative standard safety features” on Autopilot 2.0 cars
Tesla has been transparent about its Enhanced Autopilot software which the company said would roll out incrementally over time, but that hasn’t stopped HBSS Law firm from filing a new class-action suit today, alleging that Tesla deceitfully sold “inoperative Standard Safety Features” on cars that “lack basic functions featured in cars at half the price”. In question is, what the suit describes as, “nonfunctional” Autopilot 2.0 software, an optional feature available on Model S and Model X vehicles equipped with self-driving hardware.
Tesla responded to the suit, slamming the credibility of the claims being made, stating:
“This lawsuit is a disingenuous attempt to secure attorney’s fees posing as a legitimate legal action, which is evidenced by the fact that the suit misrepresents many facts. Many of the features this suit claims are “unavailable” are in fact available, with more updates coming every month. We have always been transparent about the fact that Enhanced Autopilot software is a product that would roll out incrementally over time, and that features would continue to be introduced as validation is completed, subject to regulatory approval.
Furthermore, we have never claimed our vehicles already have functional “full self-driving capability”, as our website has stated in plain English for all potential customers that “it is not possible to know exactly when each element of the functionality described above will be available, as this is highly dependent on local regulatory approval.” The inaccurate and sensationalistic view of our technology put forth by this group is exactly the kind of misinformation that threatens to harm consumer safety.”
The new class-action suit alleges that the California electric car maker knowingly sold nearly 50,000 vehicles equipped with self-driving Autopilot 2.0 hardware and the promise that Enhanced Autopilot hardware “still has not met Tesla’s promises” and was missing standard safety features.
The suit specifically takes issue with the Enhanced Autopilot feature of Tesla vehicles noting that, “the “Enhanced Autopilot,” for which customers paid an extra $5,000, is ‘essentially unusable and demonstrably dangerous.’”
The Tesla purchase page for the Model S “Tesla’s Enhanced Autopilot software has begun rolling out and features will continue to be introduced as validation is completed, subject to regulatory approval.”
The suit takes issue with the “beta” nature of the Enhanced Autopilot software, alleging that Tesla knew that it could not do what Tesla claimed it would do. It states that “the automaker knew that its software was incapable of upholding its promises to purchasers.”
Steve Berman a managing partner of Hagens Berman which represents the plaintiffs, shared:
“Tesla has endangered the lives of tens of thousands of Tesla owners across the country, and induced them to pay many thousands of dollars for a product that Tesla has not effectively designed. Tesla sold these vehicles as the safest sedan on the road. What consumers received were cars without standard safety enhancements featured by cars costing less than half the price of a new Tesla, and a purported ‘Enhanced Autopilot’ that operates in an erratic and dangerous manner.”
The suit compares the safety features available in Tesla vehicles to those available on “cars costing less than half the price of a new Tesla.” Tesla’s over-the-air update of firmware 8.1 aimed to bring Enhanced Autopilot to near feature parity with Model S and Model X vehicles equipped with first generation Autopilot 1.0. Here’s an excerpt from our coverage of firmware version 8.1, when it was first introduced:
Vehicles equipped with Tesla’s Autopilot 2.0 feature and self-driving sensors, also commonly referred to as “hardware 2” (HW2), will see improvements to Autosteer, lifting a previous speed cap set at 55 mph (88 mkh) to 80 mph (129 kmh). The update also adds the Auto Lane Change feature and Tesla Summon, which until now was only available on first-generation Autopilot cars. Tesla’s Lane Departure Warning feature has also been added to Autopilot 2.0 which will vibrate the steering wheel if the vehicle veers from its intended driving lane when speeds reach above 36 mph (58 kmh).
Berman doesn’t see it that way, stating that “to this day, Tesla has not released truly functional software for its Standard Safety Features or Enhanced Autopilot.”
The suit lists out the specific issues it takes with the “missing” Standard Safety Features:
“Regarding its Standard Safety Features which include automatic emergency braking, front collision warning, side collision warning and auto high beams, Tesla told consumers these features would be available by December 2016 and ‘roll out through over-the-air software updates,’ but to date, only a dangerously defective Traffic Aware Cruise Control has actually come to fruition, according to the suit. The remaining features simply do not exist.”
In scope of the class-action lawsuit are “about 47,000 affected Model S and Model X vehicles.” The suit seeks the value of the standard safety features that do not exist in these cars plus $5,000 for the “nonfunctional Enhanced Autopilot feature” that many owners purchased as an option to their vehicle.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
