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Judge Dismisses Shareholder Lawsuit Over Tesla Production
A lawsuit claiming Tesla Inc. misled shareholders about its Model 3 production levels has been dismissed by a U.S. District Court judge in San Francisco.
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A lawsuit claiming Tesla Inc. misled shareholders about its Model 3 production levels has been dismissed by a U.S. District Court judge in San Francisco.
Filed in 2017, the lawsuit claimed that Tesla inflated the price of its stock by making overly optimistic statements about expected production of the car. In fact, the company spent months overcoming various manufacturing glitches as it slowly ramped up output.
Judge Charles Breyer agreed with Tesla’s position, that it issued repeated warnings about Model 3 output problems, including CEO Elon Musk’s declaration at one point that the company was going through “production hell” with the car.RELATED CONTENT
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