Tesla And Elon Musk Charged With Deceiving Shareholders Related To Autopilot And Full Self-Driving Technology

Tesla's Self Driving Technology is considered deceptive. (photo: twitter @Tesla)

JAKARTA - Tesla and its CEO, Elon Musk, have been charged by shareholders over claims that the company has made up for the effectiveness and safety of Autopilot and Full Self-Driving technology on their electric vehicles.

Shareholders filed a class action charge in San Francisco federal court on Monday 27 February, stating that Tesla had deceived them for four years with false and misleading statements hiding how its technology, which is suspected to have caused several fatal accidents, "suggested serious risk of accidents and injuries".

They said that Tesla's share price fell several times when the truth was revealed, including after the National Highway Traffic Safety Administration (NHTSA) began investigating the technology, and there were reports that the Securities and Exchange Commission (SEC) was also investigating Musk's Autopilot claim.

Tesla's share price also fell 5.7% on February 16 after NHTSA forced Tesla to re-emit more than 362,000 vehicles equipped with Full Self-Driving beta software as it could be dangerous around the intersection.

Tesla has said it complied with a request for a return, although it disagreed with NHTSA's analysis.

"The defendants' wrong actions and negligence, as well as a sharp decline in the value of the company's stock market, caused significant losses and damage to plaintiffs and other class members," the lawsuit said.

Tesla, which does not have a media relations department, has yet to comment on these demands.

The claim, which is led by shareholder Thomas Lamontagne, demands undetermined compensation for Tesla shareholders from February 19, 2019 to February 17, 2023. Zachary Kirkhorn's CFO and its predecessor, totaling Ahuja, were also included in the defendants.

Tesla's share price last Monday closed up $10.75, or 5.5%, to USD 207.63 per share, but the stock has lost about half its value since its peak in November 2021.

Musk, the world's second richest man, is expected to attend Tesla's investor event on March 1 to promote the ability of the company's artificial intelligence and plans to expand its lineup of vehicles.