Week 32/25 for Tesla: Model Y battery, wave of lawsuits, Musk's riches, Dojo departure, BMW iX3 launch
Tesla Faces Multiple Legal Challenges and Shifts Focus on AI Chips
Tesla, the electric vehicle giant, is currently navigating through a series of legal hurdles and strategic changes.
In a significant development, Tesla has announced that it will be relying more on external suppliers like Nvidia and AMD for its AI needs, as it continues to develop chips for its electric vehicles in-house. Elon Musk confirmed that Tesla will no longer divide its resources between two different AI chip designs, focusing solely on the development of the Tesla AI5, AI6, and subsequent chips for inference and training [1].
However, the company's sales figures in Germany for July 2025 were disastrous, with only 637 units of the refreshed Model Y registered, about a third of last year's value. This has resulted in Tesla being 55.1 percent below July 2024 sales figures [2].
In addition, Tesla is facing multiple legal challenges. A class-action lawsuit allowed to proceed accuses Tesla of misleading customers about its self-driving capabilities for years. The lawsuit challenges Tesla's claims that vehicles since 2016 have hardware capable of achieving “full self-driving” (FSD), despite the fact that Tesla’s HW3 vehicles have not achieved unsupervised Level 4-5 autonomy as promised [3].
Another shareholder lawsuit filed in Texas accuses Tesla and Musk of making materially false and misleading statements about the autonomous driving business, particularly regarding the rollout of robotaxis in Austin. The suit alleges Tesla overstated the effectiveness of its technology and downplayed the risks of robotaxis operating dangerously [4].
A securities class action is ongoing, with a deadline for lead plaintiff applications by October 3, 2025. This lawsuit alleges Tesla concealed the risks associated with its autonomous technology and overstated its business prospects, leading to losses for investors between April 2023 and June 2025 [5].
Meanwhile, Tesla is also facing allegations regarding its FSD capabilities and its Fremont factory, including claims of intolerable conditions, drug abuse, sexual and racial harassment, and alleged retaliation against complainants [6].
In a separate development, a lawyer has secured a multi-million-dollar preliminary settlement from Tesla over a fatal Autopilot crash in Florida, hinting at more lawsuits to come [7]. Another shareholder is demanding that Musk return profits from stock sales in late 2022, alleging insider information about missed targets [8].
BMW, on the other hand, is making strides in the electric vehicle market. The first representative of BMW's new class of electric cars, the BMW iX3, is expected to be presented at the IAA exhibition in September. The iX3 is expected to have a WLTP range of 800 kilometers and a charging power of up to 400 kilowatts, outperforming the Tesla Model Y in both categories [9].
Despite these challenges, Musk has been granted a new stock bonus worth $29 billion, contingent on him staying at least two more years with Tesla [10].
References: 1. Tesla to focus on AI chips development 2. Tesla's German sales plummet in July 2025 3. Class-action lawsuit against Tesla's FSD capabilities allowed to proceed 4. Shareholder lawsuit filed over Tesla's Austin robotaxi service 5. Securities class action against Tesla ongoing 6. Former Tesla managers accuse company of intolerable conditions at Fremont factory 7. Lawyer secures multi-million-dollar settlement over fatal Tesla Autopilot crash 8. Shareholder demands Musk return profits from stock sales 9. BMW iX3 outperforms Tesla Model Y in range and charging power 10. Musk granted new $29 billion stock bonus
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