Tesla Surges to Second in Trading Volume with $25B as Stock Falls 1.75% Amid Class-Action Lawsuit Over FSD Claims

On August 19, 2025, Tesla (TSLA) traded with a volume of $25.01 billion, marking a 31.63% increase from the previous day and ranking second in market activity. The stock closed down 1.75%, reflecting renewed legal and regulatory pressures.

A U.S. district court has certified a class-action lawsuit against Tesla, accusing the company of misleading consumers for eight years about the capabilities of its Full Self-Driving (FSD) technology. The case, led by Judge Rita Lin, centers on claims that Tesla overstated the functionality of its FSD package between 2016 and 2024. The plaintiffs argue the company lacked necessary hardware for full autonomy and failed to demonstrate long-distance autonomous driving. The ruling allows two groups of California-based Tesla owners—those who purchased FSD packages between 2016 and 2024 and opted out of arbitration agreements—to pursue collective legal action.

Judge Lin emphasized Tesla’s direct-to-consumer marketing model as a key factor in the certification. Unlike traditional automakers, Tesla’s reliance on its website and direct communication—such as Elon Musk’s 2016 press conference and repeated statements in blog posts and earnings calls—created widespread exposure to claims about self-driving capabilities. The court excluded claims related to the Enhanced Autopilot package, noting its advertised features did not promise full autonomy. The lawsuit seeks damages and an injunction to prevent similar misrepresentations in the future.

This legal challenge adds to ongoing regulatory scrutiny of Tesla’s autonomous driving systems, which are central to the company’s robotaxi ambitions. Analysts have maintained a cautious stance, with a “Hold” consensus rating for TSLA based on 14 Buys, 15 Holds, and eight Sells over the past three months. The average price target of $307.23 implies a 7.7% downside risk from current levels.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 1.98%, with a total return of 7.61% over the past year. While the strategy showed stability, the returns were modest, and the Sharpe ratio was low at 0.71, indicating modest risk-adjusted returns.