Tesla Inc and its Chief Executive Elon Musk have been sued by shareholders who claim they overstated the effectiveness and safety of their electric vehicles’ Autopilot and Full Self-Driving technologies.
In a proposed class action filed in federal court in San Francisco, shareholders claimed Tesla defrauded them over four years by making false and misleading statements that concealed how its technologies, suspected of being the cause of multiple fatal crashes, “created a serious risk of accident and injury.” They claimed that Tesla’s stock price dropped several times as the truth became public, including after the National Highway Traffic Safety Administration began investigating the technologies and reports that the Securities and Exchange Commission was looking into Musk’s Autopilot claims.
