Tesla shareholder suit says Musk and co. lied about Full Self-Driving safety
Investor lawsuit cites recall of Tesla cars that act dangerously in intersections.
Enlarge / Cars parked at the Tesla Fremont Factory in Fremont, California, on February 10, 2022. (credit: Getty Images | Josh Edelson)
A class-action complaint alleges that Tesla and CEO Elon Musk repeatedly made false statements about the capabilities and safety of the electric carmaker’s Autopilot and Full Self-Driving (FSD) technology.
The complaint, filed Monday in US District Court for the Northern District of California, comes less than two weeks after a recall of 362,758 cars based on a US government finding that Tesla’s “FSD Beta system may allow the vehicle to act unsafe around intersections, such as traveling straight through an intersection while in a turn-only lane, entering a stop sign-controlled intersection without coming to a complete stop, or proceeding into an intersection during a steady yellow traffic signal without due caution.” The problem is slated to be fixed by an over-the-air software update.
The lawsuit was filed by investor Thomas Lamontagne and seeks to represent a proposed class of potentially thousands of people who acquired Tesla stock. Tesla, Elon Musk, and other Tesla executives “made materially false and misleading statements regarding the Company’s business, operations, and prospects,” the lawsuit said, continuing:
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