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Tesla wins dismissal of shareholder lawsuit over Model 3 production

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By Reuters
Tesla wins dismissal of shareholder lawsuit over Model 3 production
FILE PHOTO: The front hood logo on a 2018 Tesla Model 3 electric vehicle is shown in this photo illustration taken in Cardiff, California, U.S., June 1, 2018. REUTERS/Mike Blake/File Photo   -   Copyright  Mike Blake(Reuters)

(Reuters) – A federal judge in San Francisco has dismissed a lawsuit in which Tesla Inc shareholders accused the carmaker of misleading the public about the progress on production of its Model 3 vehicle.

In a decision made public on Monday, U.S. District Judge Charles Breyer said that while the plaintiffs claimed that Tesla fell short of its production goals, “federal securities laws do not punish companies for failing to achieve their targets.”

Breyer said the plaintiffs have until Sept. 28 to amend their complaint.

(Reporting by Jonathan Stempel in New York; Editing by Dan Grebler)