If it seemed, for a while there, like everybody and his mother was suing electric vehicle giant Tesla (TSLA), you are in excellent company. A lot of people noticed much the same thing. In fact, one recent report did the math on just how much Tesla could be on the hook for, and the number is frightening: $14.5 billion. Investors did not seem particularly fazed, though, as Tesla shares gained nearly 3.5% in Friday’s trading.
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Forget margin or options. Here's how the pros trade TSLABasically, Tesla has a potential exposure of $14.5 billion, assuming every single one of the over 20 lawsuits in which it is currently engaged goes against it. The lawsuits run the gamut, as Tesla is currently being sued for wrongful deaths stemming from Autopilot use, securities fraud, and even racial discrimination, one report noted. It may not be quite that bad, however; the $14.5 billion number seems to be a worst-case scenario as more conservative estimates suggest a liability of only $2.7 billion. That is still substantial, of course, but still very concerning.
Back in 2022, Tesla built what was called a “hardcore litigation department” to “directly initiate and execute lawsuits.” Tesla’s primary defense was what reports called “corporate puffery,” noting that public claims made about autonomous driving or robots or the like should be regarded as “…vague statements of corporate optimism.” The strategy has worked, if only occasionally.
Because Not Everyone Is a Dog Person
Tesla’s Dog Mode is widely regarded as an excellent animal safety tool, if perhaps a bit exclusionary. Tesla, realizing that the features that protect dogs in this case would also work on cats and other such domesticated animals, recently changed Dog Mode to Pet Mode as part of the recently-revealed Spring 2026 Software Update.
The new mode even includes a display screen that can feature your pet’s name, and announces to passersby via that display screen: “Don’t worry! (Pet’s Name) is chillin’.” Also included is a display of the vehicle’s internal temperature. This is designed to keep concerned animal lovers from breaking a window in the belief that they are saving an animal from an unpleasant death in a hot car. Instead, Pet Mode keeps the vehicle’s interior at a constant temperature while you are away from the vehicle.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. After a 70.95% rally in its share price over the past year, the average TSLA price target of $401.13 per share implies 1.21% downside risk.
