Tesla (TSLA) and its CEO, Elon Musk, secured a significant legal victory on Monday. This comes as U.S. District Judge Araceli Martinez-Olguin dismissed a lawsuit accusing them of defrauding shareholders by overstating the capabilities of TSLA’s self-driving technology.
The judge ruled that shareholders failed to provide sufficient evidence to prove Tesla and Musk were liable for misleading statements about the safety and effectiveness of their self-driving capabilities. She also dismissed claims that Musk’s statements were false or promoted carelessness, stating that many of these statements could be seen as predictions about the future.
While this is a positive development for Tesla, the legal battle is not finished yet. The judge has allowed investors until October 30 to file a revised complaint, which could prolong the case.
TSLA Faces a Horde of Legal Issues
This recent victory is just one such example of Tesla’s ongoing legal saga. The company is dealing with numerous lawsuits concerning its self-driving technology.
In this context, Tesla is facing a class-action lawsuit from consumers who claim they were misled by the company’s marketing of its self-driving capabilities. Further, the company is under investigation by federal regulators for potential safety defects related to its Autopilot system. The Securities and Exchange Commission is also looking into whether TSLA made false claims about its self-driving technology.
It is worth monitoring these developments closely, as they could significantly impact TSLA’s future.
Is Tesla Stock a Buy Today?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 12 Buys, 16 Holds, and seven Sells assigned in the last three months. At $210.91, the average Tesla price target implies 19.39% downside potential. Shares of the company have gained 24.7% in the past three months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
