Tesla Inc. (Nasdaq: TSLA)
A class action has been commenced on behalf of purchasers of Tesla Inc. (Nasdaq: TSLA) common stock between May 4, 2016 and October 6, 2017 (the “Class Period”).
The complaint charges Tesla and certain of its officers with violations of the Securities Exchange Act of 1934. Tesla designs, manufactures and sells high-performance electric vehicles and electrical vehicle powertrain components. The Company owns its sales and service network and sells electric powertrain components to other automobile manufacturers.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Tesla’s business and prospects, including 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 the Model 3 sedan as anticipated. As a result of defendants’ false statements and/or omissions during the Class Period, the price of Tesla shares was artificially inflated, reaching a high of more than $380 per share.
On October 2, 2017, Tesla issued a press release detailing its vehicle production and deliveries during the third quarter of 2017. The press release cited “production bottlenecks” as the reason for its failure to meet its production goals for the Model 3 sedan. Then on October 6, 2017, The Wall Street Journal published an article regarding Tesla’s Model 3 production problems, stating that “[u]nknown to analysts, investors and 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.” The article further stated that, “[w]hile the car’s production began in early July, the advanced assembly line Tesla has boasted of building still wasn’t fully ready as of a few weeks ago,” and that “Tesla’s factory workers had been piecing together parts of the cars in a special area while the company feverishly worked to finish the machinery designed to produce Model 3’s at a rate of thousands a week.” According to the article, Tesla had only managed to produce 260 Model 3s during the third quarter.
On this news, the price of Tesla shares fell $13.94 per share, or nearly 4%, to close at $342.94 per share on October 9, 2017.
If you are a current shareholder and purchased stock between May 4, 2016 and October 6, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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