A U.S. District Court judge dismissed a lawsuit against Tesla, Inc. TSLA on Monday. Shareholders who brought the lawsuit claimed the company and CEO Elon Musk misled investors regarding the company's Full-Self Driving (FSD) technology.
The Details: U.S. District Judge Araceli Martínez-Olguín rejected allegations that Musk overstated Tesla's self-driving technology and found that some of the alleged overstatements were not false and others concerned future plans for the technology. However, the judge gave the shareholders involved until Oct. 30 to file an updated version of their complaint.
"Plaintiffs fail to connect Musk's hands-on management with any information that he allegedly learned rendering his statements false or misleading," the judge wrote in her decision.
Investors claimed they were harmed when Tesla's stock price fell after statements regarding FSD were shown to be false or misleading, according to the complaint. Investors also alleged Musk had sold $39 billion of Tesla stock before then.
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Tesla still faces several other lawsuits surrounding its AutoPilot and FSD systems including a separate proposed class action over the company's self-driving marketing. Tesla also is involved in federal investigations concerning its AutoPilot driving technology, including whether defects in its Autopilot system have caused fatal accidents.
Tesla remains focused on expanding its FSD technology with several software updates being deployed in September, including FSD being deployed in the Cybertruck.
Tesla is set to unveil its autonomous-driving robotaxi technology at the "We, Robot' event on Oct. 10 in Los Angeles. Musk has hinted that the first unsupervised robotaxi ride could happen before the end of 2024.
"It's difficult, obviously, my predictions on this have been overly optimistic in the past," Musk said. "…based on the current trend… you could do [it] unsupervised possibly by the end of this year. I would be shocked if we cannot do it next year."
TSLA Price Action: According to Benzinga Pro, Tesla shares ended Monday's session 0.45% higher at $261.63.
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