A panel of three judges from the 9th Circuit appeals court has definitively tossed a bid from Tesla investors Kurt Friedman and Uppili Srinivasan to revive their second amended proposed class-action lawsuit against the electric car maker. Friedman and Srinivasan filed a securities fraud lawsuit against Tesla over the company’s alleged misstatements in 2017 about the company’s production timeline for the Model 3 sedan.
According to the plaintiffs, Tesla CEO Elon Musk and former Chief Financial Officer Deepak Ahuja maintained their stance that the company’s Model 3 production facilities were “on track” to meet its self-imposed target of manufacturing 5,000 Model 3 per week by the end of 2017, despite the fact that the company was experiencing “production hell.” Tesla’s failure to reach its 5,000 per week Model 3 production goal resulted in a 6.8% slide in TSLA stock.
As per U.S. Circuit Judge Daniel P. Collins, however, Tesla’s goal to produce 5,000 Model 3 per week is an unquestionable “forward-looking statement.” The Ninth Circuit explained that Tesla’s statements were neither false nor misleading, and they came with ample cautionary language as well. This meant that the Private Securities Litigation Reform Act’s safe harbor shields the EV maker from liability, as per a report from Law360.
“Tesla’s goal to produce 5,000 vehicles per week is unquestionably a ‘forward-looking statement’ because it is a ‘plan’ or ‘objective of management for future operations,’ and this plan or objective ‘relat[es] to the products’ of Tesla. Contrary to what plaintiffs contend, Tesla’s various statements that it was ‘on track’ to achieve this goal and that ‘there are no issues’ that ‘would prevent’ Tesla from achieving the goal are likewise forward-looking statements,” Judge Collins wrote.
“We reiterate that it is not enough to plead that a challenged statement rests on subsidiary premises about how various future events will play out over the timeframe defined by the forward-looking statement. This reasoning precludes plaintiffs’ theory that Tesla’s year-end goal rested on scheduling assumptions that Tesla knew it was unlikely to meet. Any such schedule about how future production would play out on the way toward the announced goal is simply a set of the ‘assumptions’ about future events on which that goal is based. Like the goal itself, such projected timelines are forward-looking statements,” the panel explained further.
The dismissal from the 9th Circuit appeals court comes as the latest blow to the plaintiffs, who also suffered a dismissal from U.S. District Judge Charles Breyer of the Northern District of California in 2019. Judge Breyer’s decision then also cited Tesla’s “repeated warnings about Model 3 production risks,” as well as Elon Musk’s personal references to “production hell,” as indications that Tesla provided ample warning to investors about its manufacturing challenges for the Model 3. The lawsuit’s 2019 shutdown from Judge Breyer was ultimately what prompted the 9th Circuit appeal.
Read the full report on the 9th Circuit’s decision against the Model 3 production lawsuit here.
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Elon Musk
Tesla announces closure date on widely controversial Full Self-Driving program
Tesla has said that it will officially bring closure to its free Full Self-Driving transfer program on March 31, 2026, giving owners until the end of the quarter to move their driving suite to another vehicle with no additional cost.
Tesla has officially announced a closure date for a widely controversial Full Self-Driving program, which has been among the most discussed pieces of the driving suite for years.
The move comes just after the company confirmed it would no longer offer the option to purchase the suite outright, instead opting for a subscription-based platform that will be available in mid-February.
Tesla has said that it will officially bring closure to its free Full Self-Driving transfer program on March 31, 2026, giving owners until the end of the quarter to move their driving suite to another vehicle with no additional cost.
NEWS: Tesla has started to inform customers in the U.S. that free FSD transfer will end on March 31, 2026.
Tesla has previously said free FSD transfers would end “that quarter,” but this is the first time in many quarters they’ve communicated a specific end date. Time will tell… pic.twitter.com/iCKDvGuBds
— Sawyer Merritt (@SawyerMerritt) January 18, 2026
After that date, Tesla owners who purchased the FSD suite outright will have to adopt the exclusive subscription-only program, which will be the only option available after February 14.
CEO Elon Musk announced earlier this month that Tesla would be ending the option to purchase Full Self-Driving outright, but the reasoning for this decision is unknown.
However, there has been a lot of speculation that Tesla could offer a new tiered program, which would potentially lower the price of the suite and increase the take rate.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Others have mentioned something like a pay-per-mile platform that would charge drivers based on usage, which seems to be advantageous for those who still love to drive their cars but enjoy using FSD for longer trips, as it can take the stress out of driving.
Moving forward, Tesla seems to be taking any strategy it can to increase the number of owners who utilize FSD, especially as it is explicitly mentioned in Musk’s new compensation package, which was approved last year.
Musk is responsible for getting at least 10 million active Full Self-Driving subscriptions in one tranche, while another would require the company to deliver 20 million vehicles cumulatively.
The current FSD take rate is somewhere around 12 percent, as the company revealed during the Q3 2025 Earnings Call. Tesla needs to bump this up considerably, and the move to rid itself of the outright purchase option seems to be a move to get things going in the right direction.
News
Tesla Model Y leads South Korea’s EV growth in 2025
Data from the Korea Automobile and Mobility Industry Association showed that the Tesla Model Y emerged as one of the segment’s single biggest growth drivers.
South Korea’s electric vehicle market saw a notable rise in 2025, with registrations rising more than 50% and EV penetration surpassing 10% for the first time.
Data from the Korea Automobile and Mobility Industry Association showed that the Tesla Model Y, which is imported from Gigafactory Shanghai, emerged as one of the segment’s single biggest growth drivers, as noted in a report from IT Home News.
As per the Korea Automobile and Mobility Industry Association’s (KAMA) 2025 Korea Domestic Electric Vehicle Market Settlement report, South Korea registered 220,177 new electric vehicles in 2025, a 50.1% year-over-year increase. EV penetration also reached 13.1% in the country, entering double digits for the first time.
The Tesla Model Y played a central role in the market’s growth. The Model Y alone sold 50,397 units during the year, capturing 26.6% of South Korea’s pure electric passenger vehicle market. Sales of the Giga Shanghai-built Model Y increased 169.2% compared with 2024, driven largely by strong demand for the all-electric crossover’s revamped version.
Manufacturer performance reflected a tightly contested market. Kia led with 60,609 EV sales, followed closely by Tesla at 59,893 units and Hyundai at 55,461 units. Together, the three brands accounted for nearly 80% of the country’s total EV sales, forming what KAMA described as a three-way competitive market.
Imported EVs gained ground in South Korea in 2025, reaching a market share of 42.8%, while the share of domestically produced EVs declined from 75% in 2022 to 57.2% last year. Sales of China-made EVs more than doubled year over year to 74,728 units, supported in no small part by Tesla and its Model Y.
Elon Musk, for his part, has praised South Korean customers and their embrace of the electric vehicler maker. In a reply on X to a user who noted that South Koreans are fond of FSD, Musk stated that, “Koreans are often a step ahead in appreciating new technology.”
News
Samsung’s Tesla AI5/AI6 chip factory to start key equipment tests in March: report
Samsung Electronics seems to be ramping its efforts to start operations at its Taylor, Texas semiconductor plant.
Samsung Electronics seems to be ramping its efforts to start operations at its Taylor, Texas semiconductor plant, which will produce Tesla’s next-generation AI5 chip.
Preparing for Tesla’s AI5/AI6 chips
As per a report by Sina Finance, Samsung Electronics is looking to begin trial operations of extreme ultraviolet (EUV) lithography equipment at its Taylor facility in March. These efforts are reportedly intended to support the full production of Tesla’s AI5 chips starting in the latter half of 2026.
The Taylor factory, Samsung’s first wafer fabrication plant in the United States, covers roughly 4.85 million square meters and is nearing completion. Media reports, citing contractors, have estimated that about 7,000 workers now work on the factory, about 1,000 of whom are reportedly working from the facility’s office building.
Samsung is reportedly preparing to apply for a temporary occupancy permit, which would allow production to begin before the plant is fully completed.
Tesla’s aggressive AI chip roadmap
Elon Musk recently stated that Tesla’s next-generation AI5 chip is nearly complete, while early development on its successor, AI6, is already underway. Musk shared the update in a post on X, which also happened to be a recruiting message for engineers.
As per Musk, Tesla is looking to iterate its in-house AI chips on an accelerated timeline, with future generations, including AI7, AI8, and AI9, targeting a roughly nine-month design cycle. He also stated that the rapid cadence could allow Tesla’s chips to become the highest-volume AI processors in the world.
Previous reports have indicated that Samsung Electronics would be manufacturing Tesla’s AI5 chip, alongside its rival, Taiwan Semiconductor Manufacturing Company (TSMC). The two suppliers are expected to produce different versions of Tesla’s AI5 chip, with TSMC using a 3nm process and Samsung targeting 2nm production.
Tesla announces closure date on widely controversial Full Self-Driving program
Tesla Model Y leads South Korea’s EV growth in 2025
