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It's unclear if the Model S was operating on autopilot and if the driver was intoxicated.
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Tesla is recalling the vehicles to fix problems with the way the "Full Self-Driving" system behaves around intersections and following posted speed limits. The fix will come in a software update.
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The verdict by the nine jurors was reached after less than two hours of deliberation following a three-week trial and represents a major vindication for Musk.
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The company has seen its share value drop sharply, and rivals are edging into the electric vehicle market. But after doubling its profits in a year, Tesla says it has no plans to slow down.
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Two tweets in 2018 led to a class-action lawsuit alleging Musk misled investors, pulling him into court for about a half hour to deliver sworn testimony in front of a nine-person jury.
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Musk has lost hundreds of billions of dollars in recent years, largely due to Tesla stock plummeting.
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The transformational automaker's market cap has dropped by a staggering amount over the past year. Blame new competition, sales that fell short of a lofty target — and a distracted CEO.
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Two adults and two children inside the vehicle survived the fall of 250-300 feet and the driver was arrested on charges of attempted murder and child abuse, the California Highway Patrol said.
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Tesla CEO Elon Musk looks to quell investors' fears of slowing demand as inflation puts a strain on the auto industry.
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Tesla aggressively embraced Bitcoin in 2021, investing $1.5 billion in the currency. But it now says its profitability was affected by "Bitcoin impairment."