Tesla Faces Lawsuit Over Door Handle Failure Despite Stock Surge
Tesla shares surged over 7% on Monday, defying a newly filed lawsuit tied to a fatal 2023 crash involving malfunctioning door handles. The case alleges Tesla knowingly sold vehicles with door mechanisms prone to failure during collisions—a claim that contrasts sharply with investor optimism.
Jeffery and Wendy Dennis's Model 3 allegedly accelerated uncontrollably before striking a utility pole and igniting. Bystanders couldn't operate the recessed door handles to rescue the couple, resulting in Wendy's death. Legal documents suggest Tesla was aware of this critical design flaw.
Market sentiment appears divorced from the lawsuit's severity, with traders focusing instead on broader EV sector momentum. The disconnect highlights how institutional conviction can override isolated negative events—a phenomenon cryptocurrency investors will recognize from Bitcoin's resilience amid regulatory scrutiny.
