Elon Musk Faces Multiple Lawsuits Over Tesla, OpenAI Claims

Tesla Shareholders Sue Over Autopilot Claims

Tesla shareholders filed a class-action lawsuit alleging the company misrepresented the safety and effectiveness of its autopilot and full self-driving systems. The suit accuses CEO Elon Musk and CFO Zachary Kirkhorn of concealing risks that led to a stock price drop after safety investigations by the NHTSA and SEC. The complaint names 362,000 affected vehicles and cites a 5.7% stock decline following a 2023 recall of vehicles with beta self-driving software.

The lawsuit spans four years, from February 2019 to February 2023, and seeks unspecified damages. It highlights Musk’s history of shareholder lawsuits, including a recent case over 2018 tweets about taking Tesla private. Current and former CFOs are also named as defendants. Tesla has not responded to requests for comment.

Musk Testifies in OpenAI Trial

Elon Musk began his testimony in a high-stakes trial against OpenAI and co-founder Sam Altman. The case stems from Musk’s $38 million investment in OpenAI’s early years, which he left after disputes over company structure and mission. Musk now leads xAI, a direct rival to OpenAI’s organization, which is owned by SpaceX. The trial examines whether OpenAI violated founder agreements or misused Musk’s contributions.

The lawsuit involves four separate legal claims Musk filed against OpenAI. Key issues include whether OpenAI should have become a subsidiary of Musk’s Tesla and how governance decisions were handled. The trial’s outcome could reshape OpenAI’s corporate structure and influence the AI industry’s competitive landscape.

Sallie Mae Faces Lawsuit Over Scholly Acquisition

Chris Gray, founder of student loan app Scholly, sued his startup’s acquirer, Sallie Mae, for wrongful termination and data misuse. The complaint alleges Sallie Mae is exploiting student data through a subsidiary. Sallie Mae has denied the allegations and vowed to defend itself. Scholly, a Shark Tank-backed startup, was acquired in 2018.

The case raises questions about data privacy in edtech acquisitions. Gray’s lawsuit highlights tensions between startups and larger financial institutions over post-acquisition integration and data ownership. Sallie Mae’s response could set precedent for similar disputes in the sector.

Legal Risks Across Musk’s Portfolio

Musk’s legal challenges extend beyond Tesla and OpenAI. Twitter shareholders have sued over Musk’s acquisition of the platform, claiming his actions caused stock volatility. Neuralink and SpaceX are also under scrutiny in separate cases. The overlapping lawsuits reflect the financial and regulatory risks of Musk’s multi-industry empire.

The Tesla trial is particularly consequential: if shareholders prove misrepresentation, Musk could face personal liability. The case also impacts investor confidence in autonomous driving technology, a critical growth area for the company. Musk’s March 1 investor day presentation on AI could face renewed skepticism if the lawsuit remains unresolved.

What to Watch

The Tesla shareholders’ lawsuit will hinge on evidence of intentional misrepresentation versus reasonable estimates about emerging technology. Key dates include pre-trial motions in Q2 2024 and potential settlement talks. In the OpenAI trial, the court’s interpretation of founder agreements may determine whether Musk has legal claims for governance changes. Sallie Mae’s defense strategy in the Scholly case will likely focus on contractual terms and regulatory compliance. All three cases could set precedents for tech sector governance and liability.

Updates

• 2026-05-01 — Elon Musk had a bad week in court (source)