It was a Big Win for Tesla’s Elon Musk on Monday

Elon Musk, the CEO of Tesla may have been breathing a little bit easier on Monday after a federal judge in San Francisco dismissed for the second time a securities fraud lawsuit brought by Tesla Inc shareholders.

The shareholders had alleged that Tesla made misleading comments about the production status of its Model 3.

The lawsuit sought class action status for shareholders who bought Tesla stock between May 3rd 2016 through Nov. 1st, 2017.

U.S. District Judge Charles Breyer granted Tesla dismissal of the lawsuit brought in October 2017. It was the second time the judge dismissed the lawsuit. The first being in August but he had allowed plaintiffs to file an amended one.

The shareholders argued that they bought “artificially inflated” shares because Musk and other executives had misled them with bullish statements about the production ramp of the Model 3. The lawsuit said Tesla’s executives had failed to disclose that the company was “woefully unprepared” for the vehicle’s production.

Tesla said however that it had been forthcoming about challenges with Model 3 production, including repeated statements by Musk that Tesla was undergoing “production hell.”

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.