SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/tesla/) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Tesla Motors, Inc. (“Tesla”) (NASDAQ:TSLA) publicly traded securities during the period between May 10, 2013 and November 6, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 8, 2013. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/tesla/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Tesla and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Tesla designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. Tesla currently offers two electric vehicles, the Model S, which has been in production since 2012, and the Model X, which will be delivered to customers beginning in 2014.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s operations and its business and financial results and outlook. Defendants misled investors by failing to disclose that there was a major design defect in Tesla’s lithium-ion battery pack which could ignite and cause a fire. As a result of defendants’ false statements, Tesla’s securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $193.37 per share on September 30, 2013.
On October 2, 2013, a video was widely circulated showing a Model S’s battery pack catching fire and bursting into flames on a road in Washington state. Tesla attributed it to a collision with road debris and denied that the car’s lithium-ion battery pack had ignited the fire. The same day, Tesla was downgraded by an analyst at Robert W. Baird & Company, who pointed to significant execution risks for Tesla. As a result of this news, Tesla’s shares fell $12.05 per share to close at $180.95 per share on October 2, 2013. On October 28, 2013, a second Model S fire occurred in Mexico, which Tesla blamed on the car’s rate of speed and its crash into a tree. On this news, Tesla’s shares fell another $6.80 per share, closing at $162.86 per share on October 28, 2013.
Then, on November 5, 2013, after the market closed, Tesla released its financial results for the third quarter of 2013. The Company’s key metrics failed to meet analyst expectations, including a disappointing rate of vehicle deliveries. As a result of this news, Tesla’s shares fell $25.65 per share, closing at $151.16 per share on November 6, 2013, a one day decline of nearly 15% on high trading volume. Subsequently, on November 7, 2013, Tesla confirmed a third Model S fire, similar to the October 2, 2013 blaze, which was also caused by impact with road debris during normal driving conditions. Tesla shares continued to decline as a result of this news, dropping $11.39 per share, to close at $139.77 per share on November 7, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of Tesla publicly traded securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in ten offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
