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Tesla Model X owner files for Lemon Law protection claiming unfixable defects
The first Lemon Law suit that we know of has been filed by a California man over the claim that his $162,000 Tesla Model X exhibits ‘weird’ behavior and is dangerous to drive.
Model X owner Barrett Lyon filed suit at Placer County Court in Roseville, CA claiming that the vehicle’s electronically actuated doors have slammed shut on his leg as well as damaged property as a result of its behavior. According to the Courthouse News Service (CNS), Lyon said “The doors do some weird, wicked things. If you get in and slide sideways and accidentally tap the brake, the driver’s side door slams shut on your leg. That’s not a very nice thing to have happen to you.”
Tesla Model X self-presenting front doors
The doors he’s referring to isn’t the Model X’s unique dual-hinged falcon wing doors that open out and upwards. Rather, Lyon is claiming that the vehicle’s sophisticated self-presenting and auto-closing front doors have swung open in their garage resulting in damage to the door and other property.
Among other issues being cited in the Lemon Law suit are (quoting Lyon via CNS):
- “Auto Pilot in the rain is extremely dangerous, it causes the car to swerve into different lanes.”
- “Powered front doors are opening into cars and other obstacles.”
- “The power door slams are a feature of the Model X, and cannot be disabled”
- “The touch screen freezes repeatedly, the second row seat causes driver’s seat to fold forward, and the auto park feature does not work 90 percent of the time,”
What’s interesting about this case is that Lyon would appear to be a long time supporter of Tesla being an owner to a Roadster as well as a Model S which he states have not given him any troubles. The Model X on the other hand has been a disappointment and thus remains undriven. “It’s parked. We don’t drive it. It’s basically a really fancy car decoration.”, says Lyon.
Lyon’s suit wouldn’t be the first time Tesla was faced with a Lemon Law challenge. Back in early 2014, the self-proclaimed “Lemon Law King” represented a Model S owner who claimed his newly bought vehicle at the time was out of service for a total of 66 days shortly after his March 2013 purchase due to alleged defects which prevented the vehicle from turning on and driving. Tesla quickly fired back releasing a statement on their blog defending their position, but also questioning the true motives behind the suit.
This new Lemon lawsuit brought on by Lyon and represented by San Francisco based law firm Anderson, Ogilvie & Brewer could have some merit especially with more widespread reports of the over-engineered “Best car ever” facing quality issues. Tesla CEO Elon Musk continues to reassure potential buyers that the company has increased its quality checks. Musk has gone as far as saying that he personally checks vehicles for quality and has set up a sleeping bag at the end of the production line where he sleeps.
Lyon seeks a refund on the purchase of the vehicle including registration fees. He also seeks damages for breach of warranty and lawyer fees.
Below is a copy of what the California Office of Attorney General defines as the Lemon Law.
California “Lemon Law”: A special provision, often called the “Lemon Law,” helps determine what is a reasonable number of repair attempts for problems that substantially impair the use, value, or safety of the vehicle. The “Lemon Law” applies to these problems if they arise during the first 18 months after the consumer received delivery of the vehicle or within the first 18,000 miles on the odometer, whichever occurs first. During the first 18 months or 18,000 miles, the “Lemon Law” presumes that a manufacturer has had a reasonable number of attempts to repair the vehicle if either (1) the same problem results in a condition that is likely to cause death or serious bodily injury if the vehicle is driven and the problem has been subject to repair two or more times by the manufacturer or its agents, and the buyer or lessee has at least once directly notified the manufacturer of the need for the repair of the problem as provided in the warranty or owner’s manual or (2) the same problem has been subject to repair four or more times by the manufacturer or its agents and the buyer has at least once directly notified the manufacturer of the need for the repair of the problem as provided in the warranty or owner’s manual or (3) the vehicle is out of service because of the repair of any number of problems by the manufacturer or its agents for a cumulative total of more than 30 days since delivery of the vehicle.
Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
