Tesla’s Bad Week: Robotaxis, Lawsuits, and Sliding Sales

Tesla Robotaxi crashes, sales slump, and legal drama are putting pressure on Elon Musk’s EV empire. Here’s why Tesla’s summer isn’t going to plan.

Tesla’s autonomous ambitions are under fire, sales are dropping, and regulators are circling. Is Elon Musk’s house of lithium finally wobbling?

It’s been a rough ride for Tesla. A week ago, the stock briefly rallied on a whiff of Robotaxi hype. Today, the headlines read more like a courtroom drama directed by the NHTSA. Tesla’s Robotaxi beta is careening into regulatory walls, sales in Europe are spinning out, and lawsuits are queueing up faster than Supercharger lanes on a holiday weekend.

Tesla was once the poster child for disruption. Now, it’s attracting the kind of attention that makes boardrooms sweat and insurance lawyers salivate.

Why does this matter right now?

Tesla’s long-hyped Robotaxi dream is finally live in Austin, and the early results are the stuff of dashcam horror reels. The NHTSA is investigating after multiple videos surfaced showing driverless Teslas drifting into bike lanes, making aggressive turns, or simply stalling in the middle of traffic. Think of it as Knight Rider with a head injury.

Texas lawmakers, not typically the most regulation-happy bunch, have asked Tesla to slow down deployment until new autonomous rules kick in this September. That’s a polite way of saying, “You’re about to crash our legislative party.”

What’s worse: Tesla requested that all Robotaxi performance data be kept confidential hardly the move of a company confident in its tech. Transparency, it seems, is optional when your car might wander into oncoming traffic.

How does Tesla stack up against rivals now?

Short answer: not well. Tesla’s European registrations have dropped for the fifth consecutive month, down 28% year-over-year. That’s not just a wobble it’s a slide into second-tier status behind legacy automakers like Volkswagen and BMW, who are now beating Tesla at its own EV game.

In the U.S., deliveries are projected to miss estimates again. Barclays analysts put Q2 shipments around 375,000 units well below the 400,000 benchmark Tesla once crushed with ease.

Meanwhile, competitors are luring away would-be Tesla buyers with more interior tech, broader EV range, and better build quality. The 2025 Hyundai Ioniq 6 and BMW i5, for example, now offer comparable horsepower and torque without the quality-control roulette.

Who is this for and who should skip it?

If you still believe the Tesla Robotaxi will replace your Uber by next summer, this week has been a rude awakening. And if you’re buying based on resale value or regulatory goodwill, best to keep that wallet holstered.

But for die-hards, Tesla remains the Apple of EVs. You’re not just buying a car; you’re buying an ecosystem, an identity, and a direct line to Elon’s Twitter feed.

Still, Tesla’s no longer the automatic pick for anyone seeking the best family SUVs, luxury EV crossovers, or reliable interior tech. Rivals now offer superior warranties, better fit and finish, and far fewer lawsuits.

What’s the long-term significance?

Tesla isn’t about to collapse, but its pedestal is crumbling. Legal pressure is mounting, especially around Autopilot and “Full Self-Driving.” A New Jersey lawsuit claims FSD directly caused a 2024 fatal crash. Federal class actions argue Tesla overpromised and underdelivered on autonomy. And in France, regulators have ordered Tesla to cease “deceptive” business practices, citing everything from range misstatements to sketchy contract language.

Even Musk’s beloved arbitration clause is under scrutiny, as it’s increasingly used to sidestep open courtroom battles keeping unhappy customers in private hearings instead of public trials.

The broader issue? Tesla’s once-magical brand now sits squarely in the crosshairs of global regulators. With tariff impacts hitting Chinese-made parts and U.S. competition heating up, Tesla risks becoming the Blackberry of the EV world once essential, now avoidable.

Robotaxis may yet find their place, but Tesla’s insistence on secrecy, speed, and self-certification might be its undoing. And no, saying “it’s just software” doesn’t fix a bent fender or a wrongful death suit.