Tesla Faces Class-Action Lawsuit Seeking $583K in Damages
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19 hours ago
0mins
Source: seekingalpha
- Class-Action Lawsuit Initiated: A group of 10 Chinese car owners has filed a class-action lawsuit against Tesla in the Daxing District People's Court, seeking over 3.95 million yuan (approximately $583,000) in damages, alleging fraudulent marketing of its Full Self-Driving feature, which has impacted consumer purchasing decisions.
- Core Functionality Dispute: The lawsuit centers on whether Tesla's Full Self-Driving (FSD) feature delivers the advertised 'fully autonomous driving capability,' with plaintiffs claiming that Tesla knowingly misled them since the feature was not approved by Chinese regulators.
- Tesla's Response: Tesla asserts that while the FSD feature is operational, several upcoming functionalities are still under development, and the company has not issued an official statement regarding the lawsuit, indicating a cautious approach to legal challenges.
- Market Impact Assessment: This lawsuit could negatively affect Tesla's brand image and market trust, particularly in the crucial Chinese market, potentially leading to diminished consumer confidence in its products and impacting future sales.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 442.100
Low
25.28
Averages
401.93
High
600.00
Current: 442.100
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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