Tesla, its CEO Elon Musk and other top company officials 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 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.”
As per reports, 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. The complaint said:
“As a result of the defendant’s wrongful acts and omissions, and the precipitous decline in the market value of the company’s common stock, the plaintiff and other class members have suffered significant losses and damages.”
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com