Tesla was victorious in a lawsuit that claimed some of its statements regarding its Full Self-Driving suite were misleading and were used to push its stock price upward.
U.S. District Judge Araceli Martínez-Olguín dismissed the suit, which was brought on by shareholders, who said CEO Elon Musk exaggerated the capabilities and timeline of Tesla Full Self-Driving capabilities.
Bloomberg, who first reported on the suit’s dismissal, used the example of Musk stating drivers would be able to sleep in their cars while they traveled by 2020.
Judge Martínez-Olguín said some of the statements were in regard to future plans, but others were not technically false.
The report stated:
“Plaintiffs fail to connect Musk’s hands-on management with any information that he allegedly learned rendering his statements false or misleading.”
The claim from the plaintiffs was that Musk said these things to push the stock price upward. When it did spike, the suit claims he sold $39 billion in stock.
However, the suit has been thrown out.
Tesla Full Self-Driving presents billions in growth by 2030, firm says
Tesla has definitely been extremely aggressive with its timelines. It has said for many years that it would solve self-driving “by the end of the year” or “by the end of next year,” but it has failed to do so.
This is not to say Tesla has not done a lot to advance semi-autonomous driving capabilities within its vehicles.
On October 10, Tesla will unveil its Robotaxi platform, which will be its biggest step toward a self-driving vehicle.
The suit is labeled as Lamontagne v. Tesla Inc., 23-cv-00869, US District Court, Northern District of California.
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