Tesla sued by deceased driver’s family over ‘fraudulent misrepresentation’ of Autopilot safety
Tesla Supercharger stations are seen in a parking lot in Austin, Texas, on Sept. 16, 2024.
Brandon Bell | Getty Images
Tesla is being sued by the family of a driver who died in a 2023 collision, claiming that the company’s “fraudulent misrepresentation” of its Autopilot technology was to blame.
The Tesla driver, Genesis Giovanni Mendoza-Martinez, died in the crash involving a Model S sedan in Walnut Creek, California. His brother, Caleb, who had been a passenger at the time, was seriously injured.
The Mendoza family sued Tesla in October in Contra Costa County, but in recent days Tesla had the case moved from state court to federal court in California’s Northern District. The Independent first reported on the venue change. Plaintiffs generally face a higher burden of proof in federal court for fraud claims.
The incident involved a 2021 Model S, which smashed into a parked fire truck while the driver was using Tesla’s Autopilot, a partially automated driving system.
Mendoza’s attorneys alleged that Tesla and Musk have exaggerated or made false claims about the Autopilot system for years in order to, “generate excitement about the company’s vehicles and thereby improve its financial condition.” They pointed to tweets, company blog posts, and remarks on earnings calls and in press interviews.
In their response, Tesla attorneys said the driver’s “own negligent acts and/or omissions” were to blame for the collision, and that “reliance on any representation made by Tesla, if any, was not a substantial factor” in causing harm to the driver or passenger. They claim Tesla’s cars and systems have a “reasonably safe design,” in compliance with state and federal laws.
Tesla didn’t respond to requests for comment about the case. Brett Schreiber, an attorney representing the Mendoza family, declined to make his clients available for an interview.
There are at least 15 other active cases focused on similar claims involving Tesla incidents where Autopilot or its FSD — Full Self-Driving (Supervised) — had been in use just before a fatal or injurious crash. Three of those have been moved to federal courts. FSD is the premium version of Tesla’s partially automated driving system. While Autopilot comes as a standard option in all new Tesla vehicles, owners pay an up-front premium, or subscribe monthly to use FSD.
The crash at the center of the Mendoza-Martinez lawsuit has also been part of a broader Tesla Autopilot investigation by the National Highway Traffic Safety Administration, initiated in August 2021. During the course of that investigation, Tesla made changes to its systems, including with a myriad of over-the-air software updates.
The agency has opened a second probe, which is ongoing, evaluating whether Tesla’s “recall remedy” to resolve issues with the behavior of Autopilot around stationary first responder vehicles had been effective.
NHTSA has warned Tesla that its social media posts may mislead drivers into thinking its cars are robotaxis. Additionally, the California Department of Motor Vehicles has sued Tesla, alleging its Autopilot and FSD claims amounted to false advertising.
Tesla is currently rolling out a new version of FSD to customers. Over the weekend, Musk instructed his 206.5 million-plus followers on X to “Demonstrate Tesla self-driving to a friend tomorrow,” adding that, “It feels like magic.”
Musk has been promising investors that Tesla’s cars would soon be able to drive autonomously, without a human at the wheel, since about 2014. While the company has shown off a design concept for an autonomous two-seater called the CyberCab, Tesla has yet to produce a robotaxi.
Meanwhile, competitors including WeRide and Pony.ai in China, and Alphabet’s Waymo in the U.S. are already operating commercial robotaxi fleets and services.
An Amazon worker moves boxes on Amazon Prime Day in the East Village of New York City, July 11, 2023.
Spencer Platt | Getty Images
Amazon is extending its Prime Day discount bonanza, announcing that the annual sale will run four days this year.
The 96-hour event will start at 12:01 a.m. PT on July 8, and continue through July 11, Amazon said in a release.
For the first time, the company will roll out themed “deal drops” that change daily and are available “while supplies last.” Amazon has in recent years toyed with adding more limited-run and invite-only deals during Prime Day events to create a feeling of urgency or scarcity.
Amazon launched Prime Day in 2015 as a way to secure new members for its $139-a-year loyalty program, and to promote its own products and services while providing a sales boost in the middle of the year. In 2019, the company made Prime Day a 48-hour event, and it’s since added a second Prime Day-like event in the fall.
Prime Day is also a significant revenue driver for other retailers, which often host competing discount events.
Technology
SK Hynix shares extend gains to over 2-decade highs as parent group reportedly plans AI data center
OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025.
Justin Sullivan | Getty Images News | Getty Images
OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.
The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”
OpenAI did not immediately respond to a request for comment.
The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.
In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.
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