NEW YORK, Nov. 15, 2013 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed in the USDC for the Northern District of California on behalf of investors who purchased Tesla Motors, Inc. ("Tesla" or the "Company") (Nasdaq:TSLA) common stock between May 10, 2013 and November 6, 2013 ("Class Period").
If you purchased Tesla during the class period, you may, no later than January 7, 2014, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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 alleges that the Company made false and/or misleading statements and/or failed to disclose that Tesla's statements about the safety rating of its Model S were materially misleading due to undisclosed puncture and fire risks in its undercarriage and lithium ion battery pack; the Model S suffers from material defects which have caused the battery pack to ignite and erupt into flames under certain conditions; and that Tesla was unable to maintain a level of delivery sufficient to satisfy analyst concerns and compensate for other declining revenue streams.
On October 2, 2013, a video of a Model S burning on the roadside was widely circulated. The same day, Tesla was downgraded by an analyst who pointed to significant execution risks it faced. Following this news, Tesla shares declined $12.05 per share to close at $180.95.
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. Tesla shares fell $7.32 per share to close at $162.86.
On November 5, 2013, after the market close, Tesla announced its Q3 2013 results which failed to meet analyst expectations. Shares fell over 14% to close at $151.16 on November 6, 2013. On November 7, 2013, Tesla confirmed a third Model S fire. Following this news, Tesla shares declined an additional 7.5% to close at $139.77.
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