Tesla shareholders are taking legal action against the company, its CEO Elon Musk, CFO Zachary Kirkhorn, and his predecessor Deepak Ahuja. The group of shareholders is alleging that Tesla and its executives have been misrepresenting the capabilities and safety of its Autopilot and Full Self-Driving capability technologies. The class-action lawsuit was filed in San Francisco federal court, claiming that Tesla and Musk have defrauded shareholders.
The lawsuit claims that Tesla may have hidden the cause of fatal crashes to push its false narrative about the driver-assist systems over the course of the last four years. The shareholders allege that this misrepresentation of safety systems “created a serious risk of accident and injury.” They also point out that when people learned of the ineffectiveness of Tesla’s technologies, the stock price dropped, resulting in losses for shareholders.
The National Highway Traffic Safety Administration is currently investigating Tesla’s driver-assistance systems, and the automaker has had to pause the rollout and software updates until it can fix an issue noted by the organization. Additionally, the Securities and Exchange Commission is also investigating Musk related to his claims about the safety technologies.
Thomas Lamontagne is leading the lawsuit, which requests damages of an unspecified amount be paid to Tesla shareholders for the time period running from February 19, 2019, through February 17, 2023. Tesla’s stock lost nearly half its value last year since its high point that came in November of 2021. The share price has been on the way back up, likely related to Tesla’s 2022 price cuts resulting in a boost in demand. However, the price is still very low compared to its past performance.
The lawsuit is a reminder of the importance of accurate representation of safety systems and technologies. It remains to be seen how this case will play out, but it could have far-reaching implications for Tesla and other companies in the industry.
FAQ
Q1: Are electric car batteries recyclable?
A1: Yes, electric car batteries are recyclable.
Q2: Are electric car chargers free?
A2: It depends on the charger and the location. Some electric car chargers are free, while others may require a fee.
Q3: Can electric car batteries be rebuilt?
A3: Yes, electric car batteries can be rebuilt with the right tools and knowledge.
