Some Tesla shareholders filed a lawsuit against Tesla CEO Elon Musk, claiming his false statements misled them about the company’s autonomous driving technology. However, a U.S. court dismissed the case.
On September 30, U.S. District Judge Martinez-Olguin in San Francisco rejected the shareholders’ lawsuit, stating that the shareholders had not suffered damages from Musk’s exaggerations regarding the autonomous driving technology.
The plaintiffs, Tesla shareholders, argued that Musk misrepresented the capabilities of the company’s advanced driver-assistance software, Full Self-Driving (FSD), claiming that drivers could fall asleep in the vehicle.
They also contended that the truth about Tesla’s actual technology emerged, causing the stock price to drop and resulting in shareholder losses. They noted that Musk sold $39 billion worth of stock over several years before the price dropped.
However, U.S. District Judge Araceli Martinez-Olguin ruled that some of Musk’s exaggerated statements, as pointed out by the plaintiffs, were related to future plans and that other remarks were not necessarily false.
The judge further noted that there was no evidence to prove that Musk’s profits from the stock sales were at the expense of other shareholders’ losses.
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