Musk and Tesla now face a new challenge. The company’s insurance division is the subject of a class-action lawsuit alleging systematic underpayment of auto insurance claims and violations of state consumer-protection laws. Filed Nov. 5 in Arizona federal court, the lawsuit claims Tesla shortchanged uninsured and underinsured drivers.

Silicon Valley is gunning hard for humanoids. A report released by Morgan Stanley on Friday predicted Apple, which is reportedly looking into the robots, could potentially earn $133bn a year from them by 2040. Foxconn is reported to be deploying them at its Nvidia factory in Texas.

The money will be awarded in a series of payments over 10 years if Tesla meets a series of performance benchmarks.

Tesla ( TSLA 3.68%) CEO Elon Musk is going all in on robotaxis. He predicts "millions" of Tesla robotaxis to be on the streets of America in 2026. Much of Tesla's valuation is likely tied up in its robotaxi ambitions. But investors should be hesitant about Musk's predictions given the data below.