Tesla, Elon Musk win dismissal of lawsuit over Model 3 production

FILE PHOTO: A Tesla sales and service center is shown in Costa Mesa, California, U.S., June 28, 2018. REUTERS/Mike Blake

A federal judge in San Francisco dismissed a securities fraud lawsuit in which Tesla Inc shareholders accused the electric car company and chief executive Elon Musk of misleading them about the progress of production of its Model 3 vehicle.

In a decision made public on Aug 27, US District Judge Charles Breyer said that while shareholders claimed that Tesla fell short of its production goals, “federal securities laws do not punish companies for failing to achieve their targets”.