The US Ninth Circuit Court of Appeals reversed class certification in LoSavio v. Tesla (No. 25-7927), a suit alleging Tesla falsely advertised that cars sold since October 2016 had the hardware for full self-driving. The panel found that individual questions about what each buyer saw before purchase made class treatment inappropriate, since the statement sat on a page buyers did not have to visit, and it sent the case back to Judge Rita Lin. The ruling addresses class status only and makes no finding on whether Tesla's claims are true. Tesla's stock still closed at $354.72, down 2.13%, in a move that tracked a broader tech selloff. The article argues the bigger question is whether self-driving and robotaxi revenue can justify a $1.40 trillion valuation, given a 1.4% operating margin in the second quarter, an earnings miss, and negative free cash flow, with results due October 21.
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Related tickers and likely impact
TSLA
▲ Likely positiveTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/16/2026 | 354.67 |
| Change that session | -2.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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