Tesla: Shareholders in the US have filed a class action suit against Tesla and CEO Elon Musk over the safety claims of the Full Self-Driving and Autopilot features in the company’s electric vehicles (EVs). The lawsuit, filed in a San Francisco federal court, alleges that Tesla has defrauded shareholders over a four-year period by concealing the “serious risk of accident and injury” created by its technology with false and misleading statements. Tesla’s Chief Financial Officer Zachary Kirkhorn and his predecessor Deepak Ahuja are also named as defendants.
Class action suit filed in San Francisco federal court
Tesla has been under scrutiny over the safety of its self-driving technology following several fatal crashes in the US. The US National Highway Traffic Safety Administration (NHTSA) has been investigating Tesla’s self-driving claims, and the Securities and Exchange Commission (SEC) has been investigating autopilot claims. The proposed class action is seeking unspecified damages for shareholders of the carmaker from February 19, 2019, to February 17, 2023.
Tesla’s stock prices affected by the news of false company claims
Tesla’s stock prices have been fluctuating due to news of false company claims. The company is yet to respond to the lawsuit. Meanwhile, Elon Musk has reportedly regained the top spot as the world’s richest person, briefly losing the title to the 73-year-old French tycoon Bernard Arnault. Musk’s wealth has seen a rise by almost 70% due to a surge in Tesla’s stock price this year.
Musk’s wealth rises due to a 70% surge in Tesla’s stock price this year
Tesla’s stock has also surged about 100% from its intraday low on January 6, as investors are once again betting on riskier growth stocks amid signs of economic strength and a slower pace of Federal Reserve interest-rate increases. The company has benefited from more demand for its EVs after cutting prices on several models.
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