Getty Images | Josh Edelson
The class action complaint alleges that Tesla and CEO Elon Musk repeatedly made false statements about the functionality and safety of the electric car maker’s Autopilot and fully self-driving (FSD) technology.
The complaint, filed Monday in the U.S. District Court for the Northern District of California, states that the U.S. government has determined that Tesla’s “FSD Beta system may cause vehicles to behave unsafely around intersections.” It was filed less than two weeks after the vehicle was recalled. Go straight through an intersection in a turn lane, enter an intersection with a stop sign without coming to a complete stop, or enter an intersection without paying due attention while the yellow light is on. This issue will be fixed with an over-the-air software update.
The lawsuit, filed by investor Thomas LaMontagne, seeks to represent a proposed class of thousands of people who may have acquired Tesla shares. Tesla, Elon Musk and other Tesla executives “made materially false and misleading statements regarding the company’s business, operations and prospects,” the lawsuit said, continuing:
Specifically, Defendant made false and/or misleading statements and/or failed to disclose: (ii) Contrary to defendant’s allegations, Tesla’s Autopilot and FSD technology created significant risks of accidents and injuries associated with operating Tesla vehicles; (iii) All of the foregoing placed Tesla at increased risk of regulatory and governmental scrutiny and enforcement action, as well as reputational damage.
Stocks sold at “artificially inflated prices”
The lawsuit states that LaMontagne “acquired Tesla securities at artificially inflated prices during the class period and was harmed by the exposure of the allegedly amended disclosures.” The complaint cites several stock price drops caused by news of Tesla’s safety flaws and related investigations.
In April 2021, August 2021, June 2022 and January 2023, investigations by the National Highway Traffic Safety Administration (NHTSA) and the Securities and Exchange Commission (SEC) will cause the stock to drop significantly, according to the lawsuit. bottom. Each time the price fell, Tesla “continued to trade at artificially inflated prices for the remainder of the class period due to defendants’ continued misrepresentations and omissions regarding Tesla’s Autopilot and FSD technology.” said the lawsuit.
“The truth will be fully revealed,” the complaint says.[d]”Regarding the news of the recall of 362,758 vehicles earlier this month.” I suffered damage.”
Tesla’s stock price peaked at $409.97 in November 2021, but fell to $108.10 by January 3, 2023. The stock then rose sharply in eight weeks and closed today at $205.71, though he fell 5.7% shortly after news of his recall this month.
I emailed Tesla media representatives about the shareholder lawsuit today, but the message was not delivered because “the recipient’s mailbox is full and we are unable to receive your message at this time.”
