Tesla Faces Lawsuit Over Alleged Cybertruck Door Failure

Tesla is facing new legal and governance challenges that could affect its operations and investor confidence. The family of 19-year-old Krysta Tsukahara filed a wrongful death lawsuit alleging she was trapped inside a Cybertruck following a crash in Piedmont, California, in November 2024. The complaint states that “the electronic door handles failed after impact, preventing passengers from escaping a fire.” Tesla and the estate of the vehicle’s driver are named as defendants.

The case comes amid ongoing scrutiny of the Cybertruck, which has faced recalls and questions over its design and build quality. According to the complaint, the failure of critical safety systems prevented a timely escape. Legal analysts note that if the court rules in favor of the plaintiffs, Tesla could face not only financial damages but also broader scrutiny of its engineering practices. This lawsuit coincides with Tesla’s push to position the Cybertruck as a mainstream product, as well as its broader efforts in autonomous vehicle technology.

According to a California Highway Patrol report, the crash occurred on the night of Nov. 27, 2024, when a Cybertruck traveling at high speed struck a tree and caught fire. The blaze cut power to the vehicle’s electric doors, trapping all four passengers with no means of exit. The lawsuit argues that the truck’s door handle design contributed to Krysta Tsukahara’s death. Inside the vehicle, if power is lost, the only way to open a rear door is by pulling a cable concealed beneath the storage liner, according to Bloomberg.

Tesla is also under governance pressure as a coalition of state treasurers, labor unions, and institutional investors urges shareholders to reject Elon Musk’s proposed $1 trillion pay package and vote against key board members in November. The group argues that Tesla’s performance targets are vague, oversight is insufficient, and the board is too closely tied to Musk’s interests. Tesla counters that Musk will only be compensated if ambitious milestones are achieved, describing the plan as performance-based. The opposition reflects a shift in investor sentiment, with shareholders pressing for stronger oversight after years of granting Musk broad latitude in exchange for growth.

Financially, Tesla’s third-quarter results showed signs of recovery. The company delivered 497,099 vehicles, an increase of about 7% year-over-year, surpassing Wall Street expectations. It also deployed 12.5 GWh of energy storage, a company record.