Tesla and its CEO Elon Musk have been sued by shareholders over claims that the company misled investors about the safety of its self-driving technology.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that Tesla and Musk made false and misleading statements about the safety of its Autopilot system. The lawsuit claims that Tesla and Musk “knew or should have known” that the Autopilot system was not as safe as they claimed it to be.
The lawsuit alleges that Tesla and Musk made false and misleading statements about the safety of Autopilot, including that it was “safer than a human driver” and that it was “capable of completely autonomous driving.” The lawsuit also claims that Tesla and Musk failed to disclose that the Autopilot system had “inherent safety risks” and that it was “not ready for full self-driving.”
The lawsuit further alleges that Tesla and Musk made false and misleading statements about the safety of Autopilot in order to boost the company’s stock price. The lawsuit claims that Tesla and Musk “knew or should have known” that the Autopilot system was not as safe as they claimed it to be, and that they “made false and misleading statements in order to artificially inflate the price of Tesla’s stock.”
The lawsuit seeks damages for investors who purchased Tesla stock between May 2016 and October 2016. The lawsuit also seeks to enjoin Tesla and Musk from making false and misleading statements about the safety of Autopilot.
Tesla and Musk have yet to respond to the lawsuit. However, Tesla has previously defended the safety of its Autopilot system, saying that it is “designed to be safer than a human driver.” Tesla has also said that it is “continuously developing and refining Autopilot to make it even safer.”
The lawsuit comes at a time when Tesla is facing increased scrutiny over the safety of its Autopilot system. In May, a Tesla driver was killed in a crash while using Autopilot, and the National Transportation Safety Board is currently investigating the crash.
The lawsuit is a reminder that companies and their executives must be careful when making statements about the safety of their products. Companies must ensure that their statements are accurate and not misleading, and that they are not making false or exaggerated claims about the safety of their products. Companies must also ensure that they are disclosing any potential risks associated with their products. Failure to do so can lead to legal action and financial penalties.
