Business

Tesla Hit With Class Action Lawsuit for Violating Customers Privacy

Published

2 years ago

2023-04-08

A Tesla owner in California filed a potential class action lawsuit against the electric manufacturer on Friday, accusing it of violating customers’ privacy. The lawsuit was filed in the United States District Court for the Northern District of California after Reuters reported on Thursday that between 2019 and 2022, groups of Tesla employees privately shared sometimes highly invasive videos and images recorded by customers’ car cameras via an internal messaging system.

The lawsuit, filed by Henry Yeh, a San Francisco resident who drives a Tesla Model Y, claims that Tesla personnel had access to the photographs and videos for their “tasteless and tortious entertainment” and “humiliation of those secretly recorded.”

“Like any reasonable person, Mr. Yeh was outraged at the prospect of Tesla’s cameras being used to violate his family’s privacy, which the California Constitution scrupulously protects,” Jack Fitzgerald, an attorney representing Yeh, told Reuters.

“Tesla must be held accountable for these invasions and for misleading him and other Tesla owners about its lax privacy practices,” Fitzgerald said. Tesla did not immediately respond to a request for comment from Reuters.

According to the lawsuit, Tesla’s behavior is “particularly egregious” and “highly offensive.”

It stated that Yeh was launching the action “on behalf of himself, similarly situated class members, and the general public” against Tesla. According to the complaint, the prospective class would comprise those who owned or leased a Tesla within the last four years.

tesla

Reuters said several Tesla employees witnessed clients “doing laundry and intimate things.” “We could see their kids,” a former employee said.

“Indeed, one of the most fundamental liberty interests society recognizes is parents’ interest in their children’s privacy,” the lawsuit stated.

The lawsuit requests that the court “enjoin Tesla from engaging in wrongful behavior, including violating customers’ and others’ privacy, and to recover actual and punitive damages.”

Meanwhile, the Financial Review reports that Tesla has reduced the price of all its vehicles in the United States after price decreases during the first quarter increased sales.

The business reduced the price of its higher-volume Model 3 and Y electric vehicles by $US1000 ($1500) and the price of its more expensive Model S and X vehicles by $US5000. It also debuted a new base model of the Model Y, beginning at $US49,990.

Elon Musk, Tesla’s CEO, has stated that he is willing to sacrifice profitability to continue growing in the face of rising interest rates and a possible recession.

tesla

Tesla is in the unusual position of having large profit margins to work with among EV manufacturers, as incumbents such as Ford Motor and younger entrants like Rivian Automotive and Lucid Group struggle to make money at lower volumes.

Musk stated at a January 25 earnings conference that orders were running at nearly twice the rate of manufacturing following Tesla’s initial lineup-wide price decreases earlier this year. However, the business could not maintain that supply-demand dynamic: deliveries increased by roughly 4% over the previous quarter, and Tesla produced nearly 18,000 more cars than it delivered to consumers.

Despite a second round of Model S and X discounts in early March, Tesla delivered just 10,695 units in the quarter, the lowest number since the third quarter of 2021. Following the most recent improvements, Tesla has reduced the price of each vehicle by at least $US20,000 and up to $US34,000 since the beginning of the year.

Earlier this year, the US carmaker reduced vehicle prices in China, sparking a pricing war in the world’s largest new-energy vehicle market. According to preliminary data given earlier this week by China’s Passenger Car Association, it exported 88,869 vehicles from its Shanghai production in March.

In China, a basic Model 3 costs 229,900 yuan ($33,400), while the Model Y costs 261,900 yuan ($38,086).

While Tesla continues to outsell other automakers in global EV sales, it faces greater competition than ever from China’s BYD Co, with BloombergNEF analysts anticipating the Berkshire Hathaway-backed manufacturer to challenge for the top spot this year.

Tesla must also ramp up the pace to continue growing at the rate that investors have come to expect. Last year, the corporation fell short of its aim of a 50% average annual increase in car deliveries, instead rising by 40%. Its growth rate fell to 36% in the first quarter.

On April 19, the Austin, Texas-based corporation will announce earnings.

In a proxy statement filed on Thursday, Tesla said that it is seeking shareholders to appoint JB Straubel, its former chief technology officer, to its board of directors to reorganize the carmaker’s senior management structure.

Straubel would succeed Hiromichi Mizuno, who has stated that he will not run for reelection. Tom Zhu, the driving force behind Tesla’s Shanghai plant, has also been named senior vice president for automotive operations.

The proposal to elect Straubel is one of five topics the firm has requested investors to vote on at its annual meeting on May 16. In contrast to the eight shareholder proposals considered in 2022, the proxy contains only one.

According to the filing, Musk did not receive a salary in 2022.

The proxy also provides an update on the number of shares Musk has pledged as collateral for the debt he has taken on, which is around 238 million, or 58% of his total shares. That amount is up from 52% when Tesla submitted its annual report in August 2022, when he had approximately 268 million shares pledged. The document also contains details regarding a change in its pledging policy, which limits the amount of loan Musk can promise.

Geoff Thomas

Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Business

Subsidies for Electric Vehicles Cut as Consumer Interest Fades

Published

3 days ago

2024-11-04

Geoff Thomas

Electric vehicles (EVs) are still considerably more expensive than traditional alternatives.

Pressure is building on Canada’s electric vehicle manufacturers, and several are rethinking their stance on E.V.s in favor of plug-in hybrids. Automobile manufacturers are now bracing themselves for an even more challenging era in the Canadian market for electric vehicles (E.V.s).

President Kristian Aquilina of General Motors Canada claims that support and expectations are misaligned because the Canadian government is reducing subsidies for electric vehicles while trying to phase out gas-powered cars.

Manufacturers find pushing for an all-electric future in Canada increasingly difficult due to fewer consumer financial incentives and increasingly strict sales targets.

With subsidies totaling up to C$12,000 (about $8,500), Canadian consumers may save a tonne of money on electric automobiles. The federal government offers a rebate of up to $5,000 Canadian, and the provinces of Quebec and British Columbia provide further incentives of up to $7,000 and $4,000, respectively.

Ford lost about 2,000 US for every EV it sold in the first three months of the year.

Ford lost about $132,000 US for every E.V. it sold in the first three months of the year.

Ontario, which eliminated rebates in 2018, had the lowest market share for electric vehicles compared to Quebec and British Columbia, two regions that offered bigger incentives and thereby drove E.V. adoption in Canada.

Although this backing is dwindling, the province of Quebec has now declared that all subsidies will end in 2027. In June, the British Columbia government restricted incentives to a smaller subset of E.V. purchasers for “available funding” and higher-than-expected E.V. sales growth.

These reductions indicate a larger pattern: provincial governments reevaluate the sustainability of taxpayer-financed incentives for E.V.s as budget deficits widen.

With lofty goals to cut pollution from gas-powered cars and increase sales of electric vehicles, the Canadian government has reduced subsidies for these vehicles. Electric or plug-in hybrid vehicles will be mandatory for all new light-duty vehicle sales in Canada by 2035.

B.C. needs to step up with incentives for consumers to buy used EVs, some opposition critics say.

Some opposition critics say that B.C. needs to step up with incentives for consumers to buy used E.V.s.

To meet our intermediate goals, 20% of new sales must be electric vehicles (E.V.s) by 2026 and 60% by 2030. Car companies are already under a lot of pressure due to dwindling incentives and increasing demands, and the clock is ticking faster by the second.

In addition, these rules impose new forms of responsibility. Automakers that do not reach their provincial sales targets may be subject to financial fines imposed by provinces such as British Columbia.

Canadian manufacturers are already under financial pressure from federal compliance credit system standards, which they must meet or face deficits. This system gives them credit for electric vehicle sales and infrastructure improvements, but it’s not without its challenges.

“The timing is not necessarily lining up very well, in that the purchase incentive support comes off just as mandates and regulations start to bite,” GMC Canada President Kristian Aquilina told Bloomberg. “It must make a difference.

Therefore, we must consider that. Despite the cutbacks, Aquilina argued that the government’s investment in enhancing the charging infrastructure could benefit E.V. sales.

Tesla Sales Fall As More Electric Vehicles Crowd the Market

Tesla Sales Fall Again As More Automakers Crowd Electric Vehicle Market

Geoff Thomas

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Business

Chewy Slides After Filing Shows 3rd-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Published

1 week ago

2024-10-30

Kiara Grace

Washington — Chewy shares fell about 2% overnight Wednesday after a regulatory filing showed that Roaring Kitty, a meme stock trader, sold his interest in the online pet retailer.

According to a beneficial ownership document filed with the Securities and Exchange Commission on Tuesday, Roaring Kitty, whose legal name is Keith Gill, sold all his Chewy shares, totaling 6.6% of the company.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Plantation, Florida-based Chewy dropped 1.9% after hours to $26.19 per share.

Gill, an investor at the core of the meme stock craze, bought more than 9 million shares of Chewy in July, making him the company’s third-largest stakeholder.

Gill built a name for himself in 2021 by rallying ordinary investors around GameStop. At the time, the video game shop was fighting to stay in business, and major Wall Street hedge funds and investors were betting against it or shorting the stock. But Gill and those who agreed with him altered GameStop’s direction by purchasing thousands of shares despite practically all acknowledged criteria indicating that the firm was in deep peril.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

That triggered what is known as a “short squeeze,” in which large investors who had bet on GameStop were obliged to buy its swiftly increasing stock to offset significant losses.

Gill has expressed confidence in GameStop Chairman and CEO Ryan Cohen’s ability to revamp the company following his success at Chewy. Cohen cofounded Chewy in 2011 and stepped down as CEO in 2018.

SOURCE | AP

Kiara Grace

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Business

Canada CBC News CEO Catherine Tait Recalled to Parliamentary Committee

Published

1 week ago

2024-10-30

Geoff Thomas

Catherine Tait won't rule out taking bonus once she leaves CBC/Radio-Canada

Canada CBC News reports that MPs have voted to recall CBC CEO Catherine Tait to a Commons committee for questioning, only a week after her last appearance, over the awarding of $18 million in bonuses to Canada CBC news executives.

The Conservatives, the Bloc Québécois, and the NDP joined forces to re-invite Ms. Tait, her successor Marie-Philippe Bouchard, and Heritage Minister Pascale St-Onge to appear before the Commons Heritage Committee.

Ms. Tait, who will relinquish her position as CEO and president of CBC/Radio Canada in January, addressed the committee last week. The House of Commons has passed a motion recalling her before the conclusion of her term, and she is now subject to an additional two hours of interrogation, which includes inquiries regarding bonuses.

MPs also resolved to summon Quebec broadcasting executive Marie-Philippe Bouchard, appointed as the new chief of CBC/Radio-Canada last week, to appear before she begins her new job following a House of Commons chamber debate.

Catherine Tait Exit Package

Catherine Tait rejected the Conservatives’ requests to deny an exit package, including bonuses, when she departed the position in January during last week’s committee hearing.

She also defended the award of $18.4 million in incentives to 1,194 staff members for the 2023-2024 fiscal year, which concluded in March, following the broadcaster’s achievement of performance indicators.

Kevin Waugh, a Conservative committee member who introduced the motion, stated that his party aimed to ensure Ms. Tait was “accountable to taxpayers” before her departure in January.

He informed The Globe and Mail that “Canadians are dissatisfied with the bonuses” and that Catherine Tait‘s exit package, which will not be disclosed, is a cause for concern.

“I am apprehensive that she has not received her bonuses in over two years, and that the Minister of Heritage or Privy Council will lavish her with bonuses when she departs in January,” he stated.

The Liberals opposed a portion of the motion that claimed that “the Liberal threat to cut funding” had resulted in the elimination of hundreds of jobs at CBC/Radio-Canada.

Defunding CBC News Canada

The Heritage Minister informed The Globe that the claim was “hypocritical,” as the Conservatives intended to completely defund CBC.

“The Conservatives’ actions today are a clear example of hypocrisy.” Ms. St-Onge stated that performance bonuses increased by 65% during the Harper Conservatives’ tenure, while CBC News Atlantic Canada experienced substantial budget cutbacks.

“As a government, we do not require any lessons from a party that has pledged to reduce the funding of CBC/Radio-Canada and the 8,000 jobs associated with it during its campaign.”

During the Tuesday debate, NDP MP Niki Ashton stated that her party endorses the “banning of executive bonuses” at CBC News Atlantic Canada but is opposed to “the Conservatives’ full frontal attack” on the broadcaster.

She stated, “We require a robust public broadcaster, but not one that distributes executive bonuses and eliminates positions.”

If the Conservatives establish the next government, they intend to deprive the CBC of public funding while maintaining French services.

Catherine Tait defended CBC and rebuffed MPs’ assaults during last week’s committee hearing. “It is evident that the members of this committee are making a concerted effort to discredit the organization and vilify me,” she stated.