(1) the Company had deficiencies in its quality assurance of vehicle models since 2022; (2) as a result, the Company was experiencing higher warranty costs; (3) the Company’s warranty reserves did not accurately reflect the quality issues in vehicles sold since 2022; (4) as a result, the Company’s profitability was reasonably likely to suffer; and (5) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.