Tesla and its CEO, Elon Musk, are facing a lawsuit from shareholders over claims of self-driving car safety. The lawsuit alleges that Tesla and Musk misled investors with false statements and failed to disclose the truth about the capabilities of its Autopilot system. The suit, which was filed in Delaware Chancery Court, is seeking unspecified damages.
According to the complaint, Tesla and Musk made statements claiming that the Autopilot system was capable of providing a "safe and reliable" driving experience. The lawsuit alleges that these statements were false and misleading, as the system has been involved in multiple accidents and has not been fully tested or approved by regulators. The plaintiffs also claim that Tesla and Musk knew or should have known about the risks and limitations of the Autopilot system but failed to disclose them to investors.
The lawsuit further alleges that Tesla's stock price was artificially inflated due to these false statements, causing investors to suffer financial losses when the truth was revealed. The plaintiffs are seeking to recover these losses on behalf of all Tesla shareholders who purchased stock between a certain period of time.
This is not the first time that Tesla and Musk have faced legal action over the safety of their self-driving technology. In 2020, the National Highway Traffic Safety Administration (NHTSA) opened an investigation into Tesla's Autopilot system after several crashes were linked to the technology. In 2021, a wrongful death lawsuit was filed against Tesla over a fatal crash involving the Autopilot system.
Tesla has yet to comment on the current lawsuit, but the company has previously defended the safety of its Autopilot system. In a statement to Reuters, a Tesla spokesperson said, "Autopilot is intended for use only with a fully attentive driver, who has their hands on the wheel and is prepared to take over at any time."
The lawsuit is just the latest challenge facing Tesla and Musk, who have faced criticism over a range of issues, from production delays to the safety of their vehicles. However, the company remains a leader in the electric vehicle market, with a market capitalization of over $1 trillion as of February 2023. It remains to be seen how this lawsuit will impact Tesla's future performance and reputation.
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