I don't think investors are unhappy due to the lack of self-driving cars. More like... because Musk pumped $44 billion of debt into Tesla just for a leveraged buyout of Twitter.
I don't think investors are unhappy due to the lack of self-driving cars. More like... because Musk pumped $44 billion of debt into Tesla just for a leveraged buyout of Twitter.
Tesla CEO Elon Musk has said numerous times since 2015 that Tesla cars would be entirely self-driving in two years, or less. But years after his self-imposed deadlines have blown by, it still hasn’t happened. Even when equipped with a $15,000 technology package that is literally called “Full Self Driving Capability,” a Tesla car can’t actually drive by itself.
Now, lawyers for Tesla are arguing that while the company may have failed to live up to these lofty goals, that doesn’t mean it perpetuated a fraud, as alleged in a class-action lawsuit filed in September.
“Mere failure to realize a long-term, aspirational goal is not fraud,” Tesla’s lawyers wrote in a November 28 court filing, asking that the suit be dismissed.
. . .
Tesla also argued too much time had elapsed since the cars were purchased and that the plaintiffs hadn’t really been harmed by the fact the cars never drove themselves, despite the system being called “Full Self-Driving” and costing some owners $15,000.
I think they are right that bad predictions by a CEO shouldn't be considered fraud or false advertising (maybe investors would have a case though?), but selling a product called "Full Self Driving...
I think they are right that bad predictions by a CEO shouldn't be considered fraud or false advertising (maybe investors would have a case though?), but selling a product called "Full Self Driving Capability" obviously is fraud.
I think this bit kinda blurs the 'bad prediction' line though. It's using bad predictions as a sales pitch. And that feels more fraudy than "Our 2020 model will have the feature"
I think this bit kinda blurs the 'bad prediction' line though.
The lawsuit cited numerous times when Musk and others at Tesla had stated that, within a year or two, the cars would be fully self-driving thanks to software updates. For instance, in a 2016 Tweet, Musk stated that a Tesla car would be able to drive itself across the United States “by next year,” the suit said.
It's using bad predictions as a sales pitch. And that feels more fraudy than "Our 2020 model will have the feature"
Agreed, that promises by a company of something upcoming isn't false advertising or fraud, but it certainly becomes one once they charge for it and fail to deliver. They aren't investors trying to...
Agreed, that promises by a company of something upcoming isn't false advertising or fraud, but it certainly becomes one once they charge for it and fail to deliver. They aren't investors trying to get in early on a promising technology, they're consumers buying a product, or in this case the promise of, and not getting it is fraud/false advertising.
If this lawsuit fails I'm curious if banks would get involved and sue as they've financed and sent Tesla money for a product that wasn't delivered. If your bank finances you for a Toyota Land Cruiser and the dealer takes the money and gives you a Corolla, they're going to sue the dealer to the moon and back.
It would be interesting to see what the contracts people signed and the owner’s manual actually said. There’s little point in debating it here, but the court’s judgement will likely go into it if...
It would be interesting to see what the contracts people signed and the owner’s manual actually said. There’s little point in debating it here, but the court’s judgement will likely go into it if it isn’t settled out of court.
Tesla's entire valuation is still driven around the narrative that Musk would not only gain a significant share of the auto industry, but would be able to make Apple style operating margins. As...
Tesla's entire valuation is still driven around the narrative that Musk would not only gain a significant share of the auto industry, but would be able to make Apple style operating margins.
As Musk stumbles with Twitter, and as we head into a recession, I can't help but wonder if investors will rethink the premium they are effectively paying that assume Tesla wild success.
Elon Musk’s Twitter Politics Add to Pressure on Tesla’s Brand Image Looks like a lot of liberals are losing their love for Tesla while conservatives are falling in love with Tesla? I wonder how...
Looks like a lot of liberals are losing their love for Tesla while conservatives are falling in love with Tesla? I wonder how much will translate to changes in buying behavior.
I don't think investors are unhappy due to the lack of self-driving cars. More like... because Musk pumped $44 billion of debt into Tesla just for a leveraged buyout of Twitter.
The class action lawsuit is not filed on behalf of investors, but of car owners.
https://www.cpmlegal.com/news-Lawsuit-Filed-Against-Tesla-for-Allegedly-Misleading-the-Public-Regarding-its-Autopilot-and-Full-Self-Driving-Technology
. . .
I think they are right that bad predictions by a CEO shouldn't be considered fraud or false advertising (maybe investors would have a case though?), but selling a product called "Full Self Driving Capability" obviously is fraud.
I think this bit kinda blurs the 'bad prediction' line though.
It's using bad predictions as a sales pitch. And that feels more fraudy than "Our 2020 model will have the feature"
Agreed, that promises by a company of something upcoming isn't false advertising or fraud, but it certainly becomes one once they charge for it and fail to deliver. They aren't investors trying to get in early on a promising technology, they're consumers buying a product, or in this case the promise of, and not getting it is fraud/false advertising.
If this lawsuit fails I'm curious if banks would get involved and sue as they've financed and sent Tesla money for a product that wasn't delivered. If your bank finances you for a Toyota Land Cruiser and the dealer takes the money and gives you a Corolla, they're going to sue the dealer to the moon and back.
It would be interesting to see what the contracts people signed and the owner’s manual actually said. There’s little point in debating it here, but the court’s judgement will likely go into it if it isn’t settled out of court.
Tesla's entire valuation is still driven around the narrative that Musk would not only gain a significant share of the auto industry, but would be able to make Apple style operating margins.
As Musk stumbles with Twitter, and as we head into a recession, I can't help but wonder if investors will rethink the premium they are effectively paying that assume Tesla wild success.
Elon Musk’s Twitter Politics Add to Pressure on Tesla’s Brand Image
Looks like a lot of liberals are losing their love for Tesla while conservatives are falling in love with Tesla? I wonder how much will translate to changes in buying behavior.