Tesla Owners Who Claimed Elon Musk's EV Company Misrepresented Vehicle Range, Lose Bid For Class Action Suit
Portfolio Pulse from Anan Ashraf
Tesla Inc (NASDAQ:TSLA) faced a lawsuit from buyers claiming the company misrepresented vehicle range. A federal court recommended individual arbitrations instead of a class action. The plaintiffs alleged Tesla overstated the travel distance of its cars on a single charge and misrepresented the driving range on dashboards. Judge Yvonne Gonzalez Rogers did not dismiss the lawsuits but mentioned the possibility of an injunction against Tesla under certain conditions. Tesla had earlier revised its range estimates for some models following new government testing regulations.
March 08, 2024 | 2:59 am
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Tesla Inc faces legal challenges over claims of misrepresented vehicle range but avoids class action lawsuit. The company had previously adjusted range estimates for some models.
The decision to recommend individual arbitrations over a class action lawsuit may limit the financial and reputational impact on Tesla. However, the ongoing legal challenges and the previous adjustment of range estimates highlight potential concerns over product transparency and regulatory compliance. These factors could influence investor sentiment but are unlikely to have a significant short-term impact on stock price, given Tesla's size and market position.
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