Tesla victorious after judge dismisses lawsuit claiming Model 3 production fraud

A securities fraud lawsuit filed by shareholders against Tesla in 2017 claiming misleading comments previously made about Model 3 production readiness has been dismissed by U.S. District Judge Charles Breyer of the Northern District of California. This is the second time the shareholders’ lawsuit was dismissed, the first being last August in favor of an amended filing.

Judge Breyer’s decision cited that Tesla’s “repeated warnings about Model 3 production risks” including CEO Elon Musk’s references to “production hell” amounted to an ignorance of the facts by the plaintiffs claiming fraud.

The class-action lawsuit was filed by two investors, Kurt Friedman and Uppili Srinivasan, and alleged that the company, Musk, and two of its Chief Financial Officers intentionally misled shareholders about the progress of Model 3 production in 2017 when the all-electric car maker was “woefully unprepared” for the manufacturing demands. At that time, Tesla had a large backlog of orders and only delivered the first Model 3 cars in July 2017 while aiming for a 5,000 per week production rate by the end of the year.

Friedman and Srinivasan claimed Tesla made “false and misleading statements” about being able to produce 5,000 Model 3 vehicles weekly by the end of 2017, and that investors were negatively impacted by the market response to the missed goal. Class-action status was sought for shareholders who had purchased Tesla stock between May 3, 2016 and November 1, 2017.

Tesla, however, had already admitted to shareholders in October 2017 that the Model 3’s production ramp was behind schedule, causing $TSLA stock to plunge from $350 to about $300. The weekly goal of 5,000 Model 3’s produced was not actually met until June 2018, but Tesla was transparent about the process challenges in meeting that number, as decided by Judge Breyer in his dismissal.

Tesla victorious after judge dismisses lawsuit claiming Model 3 production fraud


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Watch an F1 tire be sliced open in the name of curiosity

Curiosity, in this case, brought out the grinders and saws. One YouTuber decided he’d have a look at what the inside of a Formula 1 tire looks like, all in the pursuit of knowledge.

The tire is a standard issue Pirelli F1 tire that teams use, and right away, it’s clear they’re tough. It requires a lot of grinding to take the outer rubber down to what lies below. After a lot of smoke and sparks, we see there’s a steel rim that runs around the inside of the tire as part of its construction. When it comes time to actually slice it open, the same steel rim proves difficult. The shoulder section and sidewall of the tire is an easy cut, as Pirelli and F1 teams give the cars plenty of room for flex.

Finally, we have a tire cut open. We see the steel rim that runs around the inside of the tire, which keeps the tire on the wheel and provides the support. Next, there’s radial wire that runs along the sidewall, but it disappears in the shoulder of the tire, only to reappear on the surface area.

What’s surprising is how thin the actual slick rubber portion of the tire is, although we should point out that this is a used tire and not a fresh example. Obviously, there’s wear from its use on the track.

There are also ridges inside the tire that come in contact with the wheel where the steel bead is. The science behind this is to ensure the tire has the maximum amount of grip to the wheel as possible under the extreme braking forces during a race. Otherwise, the tire itself could slip into the wheel, which may lead to an out-of-balance setup. Grab a closer look in the video.