Tesla’s (TSLA) latest legal issue centers around growing frustration with owners regarding parts and repairs.
one in Lawsuit seeking class action status In federal court in San Francisco, a Model S owner is suing Tesla for paying exorbitant repair costs and long wait times for service.
This is due to the fact that Tesla has monopolized certain parts and service aspects of the business, the plaintiffs allege, because Tesla owners can only get their cars delivered at Tesla service centers, or authorized service shops. Additionally, Tesla vehicles can only be repaired using Tesla parts.
Owners of other vehicles can visit any number of service shops and use genuine parts — or third-party parts — to repair their cars. Because Tesla controls both service centers and parts, Plaintiffs allege that Tesla owners have to pay more for service and parts and have longer waiting periods for service availability and/or longer wait times for parts. have to do.
Tesla isn’t the only automaker facing class action and other types of lawsuits because of its practices or vehicle defects. However the automaker seems to find itself embroiled in one legal dispute after another, usually regarding the behavior of CEO Elon Musk.
Here are some of its biggest legal headaches.
‘Funding Secured’ Tweet
A group of Tesla shareholders alleges in a class action lawsuit that Musk and some company board members were allegedly responsible for business losses caused by Musk’s 2018 “Funding Secured” Twitter post about taking the electric-vehicle company private. were responsible for.
The case went to trial earlier this year, with Musk himself testifying over two and a half days, saying that his tweets were “truthful” and to ensure that all investors had access to tech-private talks before a news leak. have access to the same information. public.
A jury ultimately sided with Musk and Tesla, finding both not liable for fraud resulting from that tweet.
Kasturi’s huge salary package
a group of shareholders sued Elon Musk and Tesla’s board It was thought that Musk was offered an exorbitant pay package in 2018. At issue was the plaintiffs’ claim that the roughly $56 billion Musk was compensating for was not an effective means of motivation.
The plaintiffs alleged that Tesla’s board did not provide shareholders with sufficient information about the pay package, and that it was essentially rubber-stamped by Tesla’s board, all of which were selected by Musk. Plaintiffs also alleged that the board didn’t effectively supervise him because he eventually went and bought Twitter and seemed to be spending more time there than at Tesla.
Musk’s lawyers countered that the pay package actually benefited shareholders by increasing the value of their stock 10-fold.
A decision in the matter is still pending after closing arguments in February.
Autopilot on test, FSD
Finally, a few weeks ago in late February, a proposed class action lawsuit was filed in federal court in San Francisco alleging that Tesla and Musk misappropriated its autonomous driving software, specifically its Autopilot and FSD (full -self) had defrauded shareholders on its safety and effectiveness. driving) features.
The plaintiffs allege that Tesla defrauded them for four years on false and misleading statements about the autonomous software, concealing the fact that it “poses a serious risk of accident and injury” and knew the software did not work. as he said.
Separately, the National Highway Traffic Safety Administration (NHTSA) and the Justice Department are investigating Tesla over its autonomous driving software. Tesla was forced to recall over 362,000 vehicles due to defects in software caused by OTA (over the air) updates issued by Tesla.
And this week on Tuesday, Transportation Secretary Pete Buttigieg said of Tesla’s autonomous software, “I wouldn’t call something ‘autopilot’ if the manual clearly says you have to keep your hands on the wheel and eyes on the road at all times.” ” ,
The class action lawsuit over Tesla’s Autopilot and FSD software is in its early stages.
with additional reporting by Alexis Keenan,
Prasad Subramanian is a reporter with Yahoo Finance. you can follow him Twitter and on Instagram,
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