Tesla and Elon Musk sued by shareholders over Autopilot safety risks after a $38 billion drop in market value, report says
Elon Musk and Tesla were sued by shareholders Monday over alleged falsehoods in the company's claims about self-driving capabilities that they argued hurt shareholder value, a report says., investors led by Thomas Lamontagne accuse the EV maker of a four-year process of defrauding shareholders by misleading them over the potential for the firm's self-driving technology to create a"serious risk of accident and injury.
over concerns its FSD software may cause it to act"unsafe" at intersections. That coincided with a 5.7% drop in its stock price, equivalent to a $38.6 billion drop in market value for the company. "As a result of defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's common stock, plaintiff and other class members have suffered significant losses and damages," the complaint said, per Reuters.
over similar falsehood claims linked to 2016 advertising that promised FSD was"just around the corner."
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