The suit, filed in an Austin federal court, accuses Musk and Tesla of securities fraud for allegedly concealing risk related to the company's self-driving technology.

The shareholders have accused the CEO and his company of exaggerating the state of their autonomous driving technology.

Tesla Inc. and CEO Elon Musk overstated the effectiveness of its autonomous driving technology ahead of launching its Robotaxi service, an investor lawsuit said.

Tesla (NASDAQ:TSLA) shareholders have filed a proposed class-action lawsuit accusing Elon Musk and the electric vehicle maker of securities fraud for allegedly concealing safety risks tied to its self-driving vehicles,

Shareholders are suing Elon Musk and Tesla accusing them of securities fraud in connection with the company's "Robotaxis" and self-driving vehicles.

Tesla has granted CEO Elon Musk a new compensation package consisting of 96 million shares of restricted stock valued at approximately $29 billion. This award comes just six months after a Delaware judge invalidated Musk’s previous compensation plan.

TeslaTSLA is trading just below key levels but could be poised to offer investors a buy point in stock market trade after popping nearly 4% Wednesday as CEO Elon Musk teased a significant Full Self-Driving update,