Tesla and Elon Musk sued by shareholders – lawsuit claims Autopilot and Full Self-Driving tech overstated

Tesla and Elon Musk sued by shareholders – lawsuit claims Autopilot and Full Self-Driving tech overstated

Tesla, its CEO Elon Musk and other top company personnel were served with a securities class action lawsuit on Monday by shareholders who accused the defendants of downplaying the safety and regulatory risks of the EV maker’s Autopilot and Full Self-Driving (FSD) technologies.

According to a report by Reuters, the lawsuit was filed in the San Francisco federal court and is led by Thomas Lamontagne, a Tesla shareholder. The suit alleges that Tesla defrauded shareholders over four years with false and misleading statements relating to technologies that “created a serious risk of accident and injury.”

They said Tesla’s share price fell several times as the truth became known, pointing out investigations by the National Highway Traffic Safety Administration (NHTSA) and the Securities and Exchange Commission (SEC) probing into Musk’s Autopilot claims.

Most recently, the price of Tesla’s shares dropped 5.7% on February 16 after the NHTSA ordered the recall of nearly 363,000 Tesla vehicles equipped with the company’s FSD Beta software that could cause crashes when in operation.

“As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s common stock, plaintiff and other class members have suffered significant losses and damages,” the complaint said.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Californian happy March snowstorm on Mar 01, 2023 at 7:38 pm

    end of the day taxpayers will be footing the bills for this lawsuit no matter who win

    Like or Dislike: Thumb up 0 Thumb down 0
  • Elon Musk..the world's greatest magicion on Mar 01, 2023 at 8:08 pm

    Can u imagine what shit company is Tesla?
    Shareholders suing Elon the Musketeer?
    All built on overhype and Syiok sendiri myths..thats how Elon became the worlds richest man.
    Look at all the fatal runaway uncontrolled crashes in China and USA.
    Now,360000 Teslas recalled due to software malfunction.While driving your Tesla to recall centre,u might even die in a crash before they can change the software.
    Somemore, our overgungho TZ overhyping Tesla.Just pathetic.

    Like or Dislike: Thumb up 8 Thumb down 2
  • seancorr on Mar 01, 2023 at 11:11 pm

    There’s a reason why FSD was never approved by any government world-wide and that’s because of the reasons stated above. The only brand that is approved for level 3 autonomous driving in the US is @ https://www.engadget.com/mercedes-first-certified-level-3-autonomy-car-company-us-201021118.html

    Like or Dislike: Thumb up 0 Thumb down 0
  • FireAce on Mar 02, 2023 at 11:28 am

    Our government just approved Tesla to come to Malaysia. https://paultan.org/2023/03/01/tesla-malaysia-officially-coming-with-car-sales-service-centre-and-superchargers-tengku-zafrul/

    Our JPJ better make sure these Tesla comes without these “Auto Pilot” installed. There is no way it will function safely with our infamous lane splitting motorbiker and/or the “white elephant blue bicycle lane” in the KL center that make the road so narrow

    Like or Dislike: Thumb up 0 Thumb down 0
  • you all know Musk is just an overhyped salesman right? he tries to be like Jobs but comes across more like a clown… so sad so many ppl got duped by him

    Like or Dislike: Thumb up 4 Thumb down 1
  • Mohan Nair on Mar 04, 2023 at 10:43 am

    To all those folks commenting without owning a Tesla, I have Model Y with FSD beta on it. Its not perfect but it will be over a period of time.

    If you listened to Ashok Elluswamy presenting on Autopilot at Investor day at Austin TX, yes a Tamilian from India who leads Tesla’s autopilot team, once dojo computer which has been specifically installed for this purpose comes online, they will be able to get to the next level.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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