Tesla only reached its original goal of manufacturing over 5,000 Models 3s in a week in July, a year after the vehicle was officially launched. Before that, the company suffered serious Model 3 production issues that caused a massive backlog. Tesla admitted last year that it was experiencing bottlenecks caused by battery module assembly problems in its Gigafactory facility. Its over-reliance on robots also slowed down its production process.

Judge Breyer said that while the plaintiffs are correct that "defendants' qualifications would not have been meaningful if defendants had known that it was impossible for Tesla to meet its stated production goals, not merely highly unlikely," their complaint failed to establish their case. They can still amend their complaint until September 28th, though, so Tesla's not yet completely off the hook.