Tesla scores another victory after a lawsuit questioning claims about Autopilot was dismissed.
Corporate exaggerations, not fraud.
A federal judge dismissed a lawsuit against Tesla and its CEO, Elon Musk, accusing them of misleading shareholders about the effectiveness and safety of the company's driver assistance technology. U.S. District Judge Araceli Martinez-Olguin concluded that the plaintiffs failed to prove that Musk acted with "deliberate recklessness" when he claimed that Tesla's Autopilot and Full Self-Driving technologies could drive more safely than humans. The judge determined that many of Musk's statements about the capabilities of autonomous driving were considered "corporate puffery" or hyperboles about future products. Other claims were categorized as "forward-looking statements," as they referred to future expectations related to technology.
The decision was made without prejudice, meaning it can be brought back to court with amendments. This ruling adds to a series of legal victories for Tesla, which has succeeded in trials related to its driver assistance technology. Last year, the company won two jury trials where it was alleged that Autopilot was responsible for vehicle accidents. However, Tesla still faces several investigations regarding its autonomous driving claims, including inquiries from the California Attorney General's office and the U.S. Department of Justice. Additionally, the Autopilot recall that the company conducted earlier this year prompted another investigation to determine if the original issues were resolved. Musk is scheduled to unveil Tesla's highly anticipated fully autonomous robotaxi on October 10.
