Judge Rules Tesla And Musk Ignored Known Autopilot Flaw
Portfolio Pulse from Benzinga Neuro
A Florida court ruling suggests Tesla Inc. (NASDAQ:TSLA) and CEO Elon Musk may have been aware of a significant Autopilot defect but did not address it. The ruling relates to a lawsuit from a fatal 2019 accident involving Tesla's Autopilot. The court found 'reasonable evidence' of a discrepancy between Tesla's internal knowledge and its marketing claims. The case, initially set for trial in October, has been postponed indefinitely. Tesla has successfully defended similar cases in California but faces criticism after engineers testified about unaddressed Autopilot crash limitations.
November 22, 2023 | 11:29 am
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The court ruling against Tesla regarding the Autopilot defect could negatively impact investor sentiment and potentially lead to legal penalties, affecting the stock price in the short term.
The news of a court ruling suggesting Tesla's awareness of Autopilot defects could lead to a negative perception among investors, as it raises concerns about potential legal liabilities and damages to the company's reputation. This could result in a decrease in Tesla's stock price in the short term, as the market reacts to the possibility of financial penalties and increased regulatory scrutiny.
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