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3/26, 1:06 AM (Source: TeleTrader)
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Tesla wins Model 3 production lawsuit

A United States federal judge dismissed a lawsuit brought by Tesla's shareholders in which they alleged that the company made "false and misleading" statements about the production of its flagship Model 3 car, according to media reports.

The lawsuit, which was brought by shareholders who bought Tesla stock between May 3, 2016 and November 1, 2017, alleged that the shareholders bought "artificially inflated" stock as they were misled by Tesla CEO Elon Musk and other executives over the Model 3's production. Tesla, however, contended that it had been frank with regard to the challenges it faced with the Model 3's production and that Musk had repeatedly stated that it was undergoing "production hell," according to Reuters.

District Court judge Charles Breyer sided with Tesla and dismissed the lawsuit, finding that the fraud allegations had neglected Tesla's "repeated warnings about Model 3 production risks." He had previously dismissed the original lawsuit in August 2017 but permitted an amended one to be brought in October that year.

Breaking the News / DZ