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Tesla, Elon Musk seek dismissal in lawsuit alleging fraud and defamation

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Tesla and Elon Musk, jointly named as Defendants with Omar Qazi of the former @tesla_truth Twitter account, have filed a Motion to Dismiss an ongoing lawsuit brought by Plainsite.com owner Aaron Greenspan.

Greenspan, a Tesla short seller often associated with the online “$TSLAQ” community, is seeking an injunction and damages from alleged libelous activity by both Qazi and Musk. He also claims fraudulent communications by Musk and Tesla executives have lead to inflated company stock prices, thereby injuring his financial portfolio via stock purchases made and sold based on those communications. Tesla’s and Musk’s motion for dismissal was made as a separate action from the allegations against Qazi.

The Complaint, initially filed May 20, 2020, and later amended on July 2, 2020, is being litigated in the US Northern District of California, San Francisco Division under docket number 3:20-cv-03426-JD. The Motion to Dismiss was filed on July 31, 2020.

Tesla exhibits its electric cars and energy products at the 2018 LA Auto Show. [Credit: Christian Prenzler/Teslarati]

“Plaintiff’s allegations against the Tesla Defendants are not new. Plaintiff has been making the
same unsubstantiated and incendiary accusations—on Twitter, in purported online exposés, and in public and private communications—for years. What is new is Plaintiff’s attempt to transform his conspiracy theories, baseless suspicions, and Internet “research” into a federal lawsuit,” Tesla’s Motion argues against Greenspan’s claims. “Also new is Plaintiff’s apparent view that people should not use hyperbolic language or return his insults on the Internet, and Plaintiff’s claim that Mr. Musk’s dismissive commentary to and about him somehow damaged his reputation.”

The Complaint partly seeks to hold Musk liable for several statements made by Qazi during publicly-aired disagreements with Greenspan, characterizing the CEO’s positive replies to some of Qazi’s online posts as part of a “tag team” effort to discredit him. However, Tesla argues that liability would require a formal agent-type relationship between Qazi and Musk to hold legal weight. “While the [First Amended Complaint] speculates about ties between Mr. Qazi and Mr. Musk, Plaintiff tacitly admits he is not aware of such a relationship, other than alleged interactions on Twitter and in the media,” the Motion argues. Greenspan also cites Qazi’s attendance at a private Tesla event as evidence of an implied connection or common purpose with Musk.

Regarding any defamation claims, substantiated by Greenspan using email replies from Musk as well as Twitter comments in reply to a published article wherein derogatory remarks were made about Greenspan, Tesla’s Motion argues such comments are constitutionally protected opinions. Of particular note in the Complaint’s allegations is a supportive email to Twitter CEO Jack Dorsey sent by Musk purportedly in support of restoring Qazi’s suspended accounts.

“Jack, what Omar is saying is accurate to the best of my knowledge. There has been an
orchestrated and sophisticated attempt to drive down Tesla stock through social media,
particularly Twitter,” Musk wrote.” This always increases around our earnings call, which is this
afternoon. Aaron Greenspan in particular has major issues. He’s the same nut but that claimed he was the founder of Facebook and sued Zuckerberg, among many other things. Never seen anything like it.”

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In reference to this cited correspondence, Tesla argues, “As with his other statements, Mr. Musk’s reference to Plaintiff as a “nut but” with “major issues” is nonactionable opinion.”

Tesla Short Shorts (Credit: Tesla)

Most of the all-electric carmaker’s reply in the Motion, though, was focused on a legal defense against the most prevalent claims the Tesla short seller community is most vocal about: The company’s stock prices are artificially inflated due to fraudulent communication regarding their activities.

“As numerous courts have recognized, however, short sellers like Plaintiff…[sell] short because he believes the price of a stock overestimates its true value…whereas the premise of the fraud-on-the-market presumption is that investors rely on the market to reflect a stock’s true value,” Tesla states in their dismissal petition. “Plaintiff does not and could not claim that he relied on any alleged false statements because he believed that Tesla was engaged in fraud during the entire time he was betting against the Tesla stock… Even if Plaintiff could invoke the fraud-on-the market presumption, it would be conclusively rebutted because the Plaintiff plainly…would have bought or sold the stock even had he been aware that the stock’s price was tainted by fraud.”

Ultimately, Greenspan is seeking a declaratory judgment holding Qazi in contempt of court, a permanent injunction preventing further libelous statements against Greenspan in any published medium (written or oral), damages from Defendants’ alleged fraudulent actions to be assessed at time of trial, statutory damages from copyright infringements (over personal photos used as described in the suit), and punitive damages for alleged law breaking. Tesla and Musk, for their part, are seeking to have the case dismissed permanently, i.e., “with prejudice.”

For the average Tesla fan, owner, or stock holder, lawsuits may seem like something to avoid at (nearly) all costs, but Musk does not give the impression he has the same hesitation. The eccentric CEO makes his opinion of short sellers like Greenspan known quite often, and he has even humorously merchandised his ongoing battle by selling bright red “Short Shorts” donning the Tesla logo on the company web store.

With Tesla stocks recently haven risen to a high of $1643 per share, the tensions between the camps will perhaps only continue to rise.

Tesla Motion to Dismiss, Aaron Greenspan by Teslarati on Scribd

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Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

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Tesla Optimus Gen 3 shows off a cleaner, factory-ready design in new app discovery

Renders hidden inside Tesla’s Android app show Optimus Gen 3’s design before any official reveal.

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Tesla Optimus Gen 3 [Credit: Tesla]

Tesla may have accidentally given a first look at its newest Optimus Gen 3 humanoid robot when photos were found in the Tesla smartphone app.

Design files tucked inside a recent Android version of the Tesla app appear to show the third generation humanoid robot next to the older Gen 2.5 prototype. The assets were extracted from the app package by Tesla community member @wholemars, who posted the renders on X late Tuesday night before deleting them. The Tesla Newswire reshared the side by side comparison on Wednesday, and the images have circulated widely since.

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

The files are labeled “gen3” and were built as models for Tesla app’s own interface, as validated directly by Grok to be official.

The comparison shows a robot that looks built for a factory line rather than a lab bench. Gen 2.5’s exposed mechanical linkages and gold plating on the knees and shins are gone. In their place, Gen 3 uses matte black fairings on the lower legs, paired with a more contoured champagne gold body. Flexible covers now seal the joint where the torso meets the upper thighs, keeping bearings and moving parts sealed from debris and unnecessary contact.

The body panels fit more tightly, and the hands, which Tesla has said carry 22 degrees of freedom, look far more refined than those on earlier units.

This most recent leak fills a gap Tesla has left open for most of the year. Elon Musk said on March 31 that Optimus 3 was walking around but needed “some finishing touches” before it could be shown, a delay Teslarati covered when Tesla missed its first quarter reveal target. Musk later said Tesla would hold the design back until closer to production, partly to keep competitors from copying it. No reveal date has been announced.

The app itself has been preparing for Optimus for months. In July, code in the Tesla app pointed to a dedicated robot phone key, a consent screen for collecting video and spatial data while Optimus works inside a home, and an alert system for low battery and mechanical faults. Finished 3D models of Gen 3 suggest the interface owners will eventually use is moving past placeholder code toward something Tesla intends to ship.

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Manufacturing is moving in parallel. Tesla tore out the original Model S and Model X lines at Fremont this summer to make room for Optimus production, with a planned capacity of one million robots a year. At Giga Texas, the steel frame of a dedicated Optimus factory is nearing completion ahead of a targeted 2027 start, with Musk pointing to an eventual output of 10 million units annually.

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Tesla Semi lands the biggest electric truck deal in U.S. history

Tesla leads a record 2,500 truck order, but not every truck will be a Semi.

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Tesla has landed the largest electric truck order in U.S. history. ZET SCALE, a new alliance of shippers and carriers, named Tesla its primary manufacturer on Tuesday for an initial order of 2,500 electric Class 8 trucks. The deal alone would nearly double the number of electric heavy trucks operating in the country.

According to the press release from Catalyst Mobility, the nonprofit formerly known as CALSTART, Kenworth, RIDE and Volvo were also selected as secondary manufacturers that carriers can pick if their operations call for it. No split between the four brands has been published, so the exact number of Semis in the order is not yet known.

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Tesla won the top slot through a competitive request for proposals. The alliance, which Catalyst Mobility runs with the Smart Freight Centre, scored bidders on price, range, charging capability and production capacity. Pooling freight demand from founding shippers, including Microsoft and PepsiCo, let every truck maker bid lower than it would for a single fleet. “The Tesla Semi is designed for lower cost per mile operations than diesel,” said Dan Priestley, director of the Tesla Semi program, as noted in the press release.

The financing is built to pull in carriers who have avoided electric trucks. ZET Financial is issuing the purchase order for all 2,500 units and will place them with fleets through a fair market value lease. The trucks will be deployed over the next few years across 10 freight hubs in Los Angeles, Stockton, Bakersfield, Seattle and Tacoma, Houston, Dallas, San Antonio, Chicago, Atlanta, and the Newark and New York area. ZET SCALE says the first order is only the opening round, with a longer term goal of 10,000 trucks or more.

Even if Tesla ends up with only a majority share, it would still be the biggest Semi deal to date. Einride’s 500 unit order in August was the previous record, and WattEV’s 370 truck order in May was the largest California deal at the time. Einride’s CEO has since said he expects all 500 trucks delivered by the end of 2027.

The announcement lands two days before Tesla formally inaugurates its Semi factory in Nevada on September 24. The 1.7 million square foot plant sits next to Gigafactory Nevada’s 4680 cell lines and is designed for 50,000 trucks a year.

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Tesla integrates Grok Bot into its vehicles for the ultimate personal assistant

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Credit: Grok

Tesla has expanded Grok from an in-car chatbot into a hands-free work assistant. On September 22, Tesla officially launched Grok Bot capability, confirming that drivers can now manage email, calendars, files, chats, and tasks by voice and then hand more ambitious errands to the AI-fueled productivity cheat code.

Grok itself is built by xAI. The new car features split into two layers: Connectors link Grok to outside accounts. Grok Bot, currently limited to SuperGrok Heavy subscribers, can complete multi-step tasks such as placing a usual coffee order, booking a reservation, or scheduling an appointment. It truly puts the driver in a nearly complete hands-free driving and productivity setting, with ironically the only task truly requiring your hands being to touch the “Start Self-Driving” button.

We were granted access to Grok Bot’s Tesla integration a few weeks back, and we’ve been able to do a handful of things with it. On a handful of occasions, we’ve used it to order food and have it ready for pickup slightly later into the evening; we’ve managed to pick up groceries after a day of errands with Grok Bot, and outside of the car, it’s helped with budgeting and even my fantasy football draft.

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Tesla shows another way to utilize it: in their demo, a driver says “Hey Grok,” asks the assistant to check an inbox, and hears that a message concerns a weekend reservation. Grok then scans the calendar, reports no conflicts, and confirms the Tahoe trip is clear. It can also add check-in details to a road-trip itinerary. The point is not novelty chat. It is keeping eyes on the road, or on Full Self-Driving, while the car handles the paperwork of a trip:

This Grok rollout is not a gadget add-on as much as it is Tesla’s thesis in software form: the car should stop being a machine you operate and start being a room you occupy.

Connectors and Grok Bot treat the cabin as an office that happens to move, and that has truly been Tesla’s intention for years now. The car has slowly become an extension of a home more than a vehicle. Inbox, calendar, groceries, takeout, and reservations become voice work, not dashboard chores that you need to do before you get in your car.

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Responsibility shifts from the driver to the stack, and as many Tesla owners rely on FSD for travel, Grok Bot now handles the monotony of dinner reservations or appointments.

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