Tesla Told To Face Autopilot Lawsuit In The Wake Of Safety Probes- Report
Portfolio Pulse from Shivani Kumaresan
Tesla Inc. (NASDAQ:TSLA) is facing a proposed class-action lawsuit alleging it misled consumers about its self-driving capabilities. The lawsuit claims Tesla falsely stated in 2016 that its cars would have full self-driving hardware. Judge Rita Lin allowed several fraud and negligence claims to proceed. Tesla is also under federal investigation for potential defects in its Autopilot system. Tesla stock has gained over 4% in the last 12 months but closed 2.01% lower recently. Investors can gain exposure to Tesla via ETFs like XLY and FDIS.
May 16, 2024 | 12:40 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS) includes Tesla among its holdings. The legal challenges and federal investigations facing Tesla could impact the ETF's performance.
Tesla is a significant component of the FDIS ETF. Legal and regulatory issues facing Tesla could negatively affect the ETF's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Tesla is facing a class-action lawsuit for allegedly misleading consumers about its self-driving capabilities. The lawsuit claims Tesla falsely stated in 2016 that its cars would have full self-driving hardware. Judge Rita Lin allowed several fraud and negligence claims to proceed. Tesla is also under federal investigation for potential defects in its Autopilot system.
The lawsuit and federal investigations create significant legal and regulatory risks for Tesla, which could negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) includes Tesla among its holdings. The legal challenges and federal investigations facing Tesla could impact the ETF's performance.
Tesla is a significant component of the XLY ETF. Legal and regulatory issues facing Tesla could negatively affect the ETF's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50