Tesla wins dismissal of shareholder lawsuit over Model 3 production

Reuters Staff

1 Min Read

(Reuters) - A federal judge in San Francisco has dismissed a lawsuit in which Tesla Inc (TSLA.O) shareholders accused the carmaker of misleading the public about the progress on production of its Model 3 vehicle.

FILE PHOTO: A row of new Tesla Model 3 electric vehicles is seen at a parking lot in Richmond, California, U.S. June 22, 2018. Picture taken June 22, 2018. REUTERS/Stephen Lam

In a decision made public on Monday, U.S. District Judge Charles Breyer said that while the plaintiffs claimed that Tesla fell short of its production goals, “federal securities laws do not punish companies for failing to achieve their targets.”

Breyer said the plaintiffs have until Sept. 28 to amend their complaint.

Reporting by Jonathan Stempel in New York; Editing by Dan Grebler

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