Tesla Investors Fail to Revive Model 3 Production Statement Suit

Tesla Inc. remains free of a would-be class case alleging it misled investors about the timeline for improving production capacity for its first mass-market electric car after the Ninth Circuit affirmed the suit’s dismissal Tuesday.

The automaker’s investors challenged statements related to the Tesla Model 3, but a safe harbor provision in federal securities law protects some of the assertions, and the investors didn’t adequately plead falsity as to others, the U.S. Court of Appeals for the Ninth Circuit said.

The investors accused Tesla of announcing and repeatedly reaffirming Model 3 production goals the company knew it wouldn’t be ...