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Tesla says Model 3 that burst into flames in fatal tree crash wasn’t defective

Tesla says Model 3 that burst into flames in fatal tree crash wasn’t defective

Enlarge (credit: CFOTO / Contributor | Future Publishing)

Tesla has denied that "any defect in the Autopilot system caused or contributed" to the 2022 death of a Tesla employee, Hans von Ohain, whose Tesla Model 3 burst into flames after the car suddenly veered off a road and crashed into a tree.

"Von Ohain fought to regain control of the vehicle, but, to his surprise and horror, his efforts were prevented by the vehicle's Autopilot features, leaving him helpless and unable to steer back on course," a wrongful death lawsuit filed in May by von Ohain's wife, Nora Bass, alleged.

In Tesla's response to the lawsuit filed Thursday, the carmaker also denied that the 2021 vehicle had any defects, contradicting Bass' claims that Tesla knew that the car should have been recalled but chose to "prioritize profits over consumer safety."

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Elon Musk has won $56bn pay package despite judge ruling it void, Tesla argues

Company says in court filing Musk is entitled to vast payout because shareholders voted in his favor earlier this month

Tesla is claiming Elon Musk won his legal battle over his $56bn pay package because shareholders voted for the compensation, despite a judge rescinding it earlier this year, according to court filing made public on Friday.

The company’s filing comes two weeks after Tesla shareholders voted to ratify the 2018 package of stock options. Tesla held the vote following a January ruling by a Delaware judge to void the compensation because Musk improperly controlled the negotiation process and the company misled shareholders about key details.

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Β© Photograph: David Swanson/Reuters

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Β© Photograph: David Swanson/Reuters

Tesla investors sue Elon Musk for diverting carmaker’s resources to xAI

A large Tesla logo

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A group of Tesla investors yesterday sued Elon Musk, the company, and its board members, alleging that Tesla was harmed by Musk's diversion of resources to his xAI venture. The diversion of resources includes hiring AI employees away from Tesla, diverting microchips from Tesla to X (formerly Twitter) and xAI, and "xAI's use of Tesla's data to develop xAI's own software/hardware, all without compensation to Tesla," the lawsuit said.

The lawsuit in Delaware Court of Chancery was filed by three Tesla shareholders: the Cleveland Bakers and Teamsters Pension Fund, Daniel Hazen, and Michael Giampietro. It seeks financial damages for Tesla and the disgorging of Musk's equity stake in xAI to Tesla.

"Could the CEO of Coca-Cola loyally start a competing soft-drink company on the side, then divert scarce ingredients from Coca-Cola to the startup? Could the CEO of Goldman Sachs loyally start a competing financial advisory company on the side, then hire away key bankers from Goldman Sachs to the startup? Could the board of either company loyally permit such conduct without doing anything about it? Of course not," the lawsuit says.

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Elon Musk drops claims that OpenAI abandoned mission

Elon Musk drops claims that OpenAI abandoned mission

Enlarge (credit: JC Olivera / Stringer | WireImage)

While Musk has spent much of today loudly criticizing the Apple/OpenAI deal, he also sought to drop his lawsuit against OpenAI, a court filing today showed.

In the filing, Musk's lawyer, Morgan Chu, notified the Superior Court of California in San Francisco of Musk's request for dismissal of his entire complaint without prejudice.

There are currently no further details as to why Musk decided to drop the suit.

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Why the fight over Elon Musk’s pay at Tesla won’t end with shareholder vote

Elon Musk speaks in front of a giant Tesla logo.

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Tesla shareholders will vote on Thursday on whether to restore the mammoth pay package for chief executive Elon Musk that was struck down by a Delaware judge this year. But that is not expected to close the book on a legal saga that has consumed the electric-car maker and the leading US business law court that dared to defy Musk and his overseers on the company’s board.

In asking shareholders to approve of the same 2018 pay package that was nullified by the Delaware Court of Chancery in January, Tesla is relying on a legal principle known as β€œratification,” in which the validity of a corporate action can be cemented by a shareholder vote. Ratification, the company told shareholders in a proxy note earlier this year, β€œwill restore Tesla’s stockholder democracy.”

This instance, however, is the first time a company has tried to leverage that principle after its board was found to have breached its fiduciary duty to approve the deal in the first place.

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Tesla may be in trouble, but other EVs are selling just fine

Generic electric car charging on a city street

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Have electric vehicles been overhyped? A casual observer might have come to that conclusion after almost a year of stories in the media about EVs languishing on lots and letters to the White House asking for a national electrification mandate to be watered down or rolled back. EVs were even a pain point during last year's auto worker industrial action. But a look at the sales data paints a different picture, one where Tesla's outsize role in the market has had a distorting effect.

"EVs are the future. Our numbers bear that out. Current challenges will be overcome by the industry and government, and EVs will regain momentum and will ultimately dominate the automotive market," said Martin Cardell, head of global mobility solutions at consultancy firm EY.

Public perception hasn't been helped by recent memories of supply shortages and pandemic price gouging, but the chorus of concerns about EV sales became noticeably louder toward the end of last year and the beginning of 2024. EV sales in 2023 grew by 47 percent year on year, but the first three months of this year failed to show such massive growth. In fact, sales in Q1 2024 were up only 2.6 percent over the same period in 2023.

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Your tax dollars at "work"

Popsci: (on the Tesla Cybertruck upgrades for police cruisers) "With the all-wheel drive Cybertruck's current $79,990 price, it stands to reason the combined taxpayer cost for a vehicle and new UP.FIT features could easily top $90,000. While UP.FIT's website doesn't offer any price ranges, Unplugged Performance lists similar products on its online store. A 50-inch, 48V double row LED light bar for the Cybertruck, for example, costs $1,293.75, while a front bull bar retails for $1,995. UP.FIT details at least 25 upgrades in its standard "Patrol Cybertruck" tier as well as multiple recommended and optional additions. For comparison, a brand-new 2024 Ford Explorer 4WD Police Interceptor costs roughly $47,000." (Police Cruiser Manual Override Exit Tool: $6.29)
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