NordenBladet – Tesla and CEO Elon Musk have been hit with a proposed class action lawsuit by shareholders who claim they were defrauded over four years with false and misleading statements about the safety and effectiveness of the Autopilot and Full Self-Driving technologies.
The lawsuit, filed in San Francisco federal court, alleges that the company concealed how its technologies created a serious risk of accidents and injuries, which led to a decline in the share price several times, including after investigations by the National Highway Traffic Safety Administration and the Securities and Exchange Commission.
The suit, led by shareholder Thomas Lamontagne, seeks unspecified damages for Tesla shareholders from Feb. 19, 2019 to Feb. 17, 2023, and CFO Zachary Kirkhorn and his predecessor Deepak Ahuja are also named as defendants.
Tesla’s share (TSLA) price closed yesterday (27 February) up $10.75, or 5.5%, at $207.63, but the stock has lost about half its value since peaking in Nov. 2021.
Photo: An excerpt of Tesla’s stock performance over the past year. Chart taken 27.02.2023. Source: Finance.Yahoo.com
Tesla’s investor day on March 1 will feature Musk promoting the company’s artificial intelligence capability and plans to expand its vehicle lineup.
Featured image: Tesla (Unslapsh)