Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Tesla, Elon Musk win dismissal of lawsuit over Model 3 production

Published 25/03/2019, 20:45
Updated 25/03/2019, 20:45
© Reuters. Tesla Motors CEO Elon Musk reveals the Tesla Energy Powerwall Home Battery during an event in Hawthorne, California

© Reuters. Tesla Motors CEO Elon Musk reveals the Tesla Energy Powerwall Home Battery during an event in Hawthorne, California

By Alexandria Sage

SAN FRANCISCO (Reuters) - A federal judge in San Francisco dismissed for the second time a securities fraud lawsuit brought by Tesla Inc shareholders alleging that the company made misleading comments about the production status of its Model 3.

U.S. District Judge Charles Breyer sided with Tesla, granting the electric vehicle company dismissal of the lawsuit brought in October 2017. Breyer dismissed the original lawsuit in August but allowed plaintiffs to file an amended one.

The lawsuit sought class action status for shareholders who bought Tesla stock between May 3, 2016 through Nov. 1, 2017.

It said shareholders bought "artificially inflated" shares because Musk and other executives misled them with bullish statements about the production ramp of the Model 3, failing to disclose that the company was "woefully unprepared" for the vehicle's production.

Tesla argued in its defence that it had been forthcoming about challenges with Model 3 production, including repeated statements by Musk that Tesla was undergoing "production hell."

© Reuters. Tesla Motors CEO Elon Musk reveals the Tesla Energy Powerwall Home Battery during an event in Hawthorne, California

Breyer wrote that the allegations of fraud ignored Tesla's "repeated warnings about Model 3 production risks."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.