Toronto, Ontario — A Quebec-based EV company faces lawsuits, while Tesla prepares to roll out something akin to its self-driving software in China. Read more in this week’s Tuesday Ticker.
Lion Electric facing lawsuit
Quebec-based Lion Electric has received a proposed class-action lawsuit from shareholders who claim the company misrepresented its financial situation and misled investors.
The lawsuit alleges that Lion Electric failed to disclose essential information regarding its order book and production capabilities; decisions which are said to have resulted in considerable financial losses for those who invested in the company.
Following the revelation of its difficulties, Lion Electric's stock value plummeted by 96 percent. The lawsuit identifies various parties, including directors, officers, auditors and underwriters associated with the company.
In December, Lion Electric sought creditor protection and is currently reported to be exploring a restructuring strategy that will focus exclusively on manufacturing school buses, with all production moved back to Quebec. The class-action allegations, submitted to the Quebec Superior Court in Montreal, have not yet been validated in court, and the lawsuit awaits authorization.
Self driving soon?
According to a report from Bloomberg News, Tesla is preparing to release a software update in China that will introduce driving-assistance capabilities akin to its full self-driving (FSD) features available in the United States.
The upcoming self-driving enhancements will enable Tesla owners to utilize driver-assist functions on urban roads, with the rollout starting on select models before being expanded to a wider range. Tesla has not yet provided a comment on this development.
The comprehensive deployment of Tesla's self-driving technology has encountered challenges, as regulatory bodies scrutinize the company’s software due to safety and security concerns linked to several accidents. Compounding the pressure on Tesla, Chinese electric vehicle manufacturer BYD recently launched advanced autonomous driving features across most of its models.
Additionally, reports have indicated that Tesla is exploring the possibility of licensing its FSD technology to other automakers in China, potentially offering it as a monthly subscription service. This strategy may help Tesla navigate a slowdown in U.S. electric vehicle demand amidst economic uncertainties.
Despite a decline in global deliveries, Tesla announced record sales in China for 2024, with over 657,000 cars sold in a highly competitive landscape. CEO Elon Musk has consistently promoted the company's self-driving capabilities, and analysts believe his connections could aid in expediting regulatory approvals.
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