California Class Action Hits Tesla Electric Car Maker
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of a class (the “Class”) comprising all purchasers of the securities of Tesla Motors, Inc. (“Tesla” or the “Company”) (NASDAQ:TSLA) between May 10, 2013 and November 6, 2013, inclusive (the “Class Period”).
Tesla designs, develops, manufactures and sells electric vehicles and electric vehicle powertrain components.
Tesla Motors’ goal is to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars. California-based Tesla designs and manufactures EVs, as well as EV powertrain components for industry partners. Tesla has delivered over 15,000 electric vehicles to customers in 31 countries.
Class Action Law Suit
The Complaint alleges that during the Class Period the defendants misrepresented or failed to disclose that:
- Statements about the Model S’s highest safety rating and lack of prior fire incidents were materially misleading, due to undisclosed puncture and fire risks in its undercarriage and lithium ion battery pack.
- The Model S suffered from material defects which caused the battery pack to erupt in flames under certain driving conditions.
- Tesla’s future sales, next generation Model X introduction, and stock price were vulnerable to the inherent risk posed by the Model S’s design flaws.
- The Company was unable to maintain sufficient automobile deliveries to satisfy analyst concerns and compensate for other declining revenue streams.
If you are a member of the Class described above, you may move the Court no later than January 7, 2014, to serve as lead plaintiff. To be a member of the Class, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
Tesla Cleared in Germany
Tesla received a recent inquiry from the German Federal Motor Transport Authority, Kraftfahrt-Bundesamt (KBA), regarding the Model S post-crash fire incidents in Seattle, Tennessee and Mexico. The KBA is the German authority in charge of motor vehicle regulation. They have the power to initiate and perform investigations, and compel recalls. In response, Tesla provided the KBA with data and additional information regarding each of these incidents.
No manufacturer defects
In investigating these incidents, the KBA reviewed Tesla’s responses to their inquiries, as well as other information. They subsequently issued the following statement:
According to the documents, no manufacturer-related defects [herstellerseitiger Mangel] could be found. Therefore, no further measures under the German Product Safety Act [Produktsicherheitsgesetz (ProdSG)] are deemed necessary.