Tesla Inc (NASDAQ: TSLA) Investor Securities Class Action Lawsuit 10/10/2017

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Company Name(s): 
Tesla Motors
Case Name: 
Tesla Motors Shareholder Class Action Lawsuit 10/10/2017
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: TSLA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/10/2017
Class Period Begin: 
05/04/2016
Class Period End: 
10/06/2017
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
12/11/2017
Summary: 

October 10, 2017 - An investor in shares of Tesla Inc (NASDAQ: TSLA) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Tesla Inc in connection with certain allegedly false and misleading statements made between May 4, 2016 and October 6, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of Tesla Inc (NASDAQ: TSLA) common shares between May 4, 2016 and October 6, 2017, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between May 4, 2016 and October 6, 2017, the defendants throughout the class period made false and/or misleading statements and/or failed to disclose that contrary to defendants’ representations that Tesla was prepared for the launch of its Model 3 sedan, in reality, Tesla had severely inadequate inventory and was woefully unprepared to launch Model 3 sedan as anticipated, and that as a result, Tesla’s public statements were materially false and misleading at all relevant times.

Tesla Inc reported that its annual Total Revenue rose from over $4.04 billion in 2015 to over $7 billion in 2016 and that its Net Loss declined from $888.66 million in 2015 to $674.91 million in 2016.

Shares of Tesla Inc (NASDAQ: TSLA) grew from$181.47 per share in December 2016 to as high as $383.45 per share in June 2017.

On October 2, 2017, Tesla Inc announced the Company's vehicle production and deliveries for the third quarter of 2017. Tesla Inc cited "production bottlenecks" as the reason for its failure to meet its production goals for its Model 3 sedan.

On October 6, 2017, post-market, an article was published reporting, in part, that "[u]nknown to analysts, investors and the hundreds of thousands of customers who signed up to buy it, as recently as early September major portions of the Model 3 were still being banged out by hand, away from the automated production line, according to people familiar with the matter."