Friday , October 7 2022

Tesla Stock Hit by Negative News, Bears Joy


This year's stock fell nearly 30%. Some negative news hit Tesla in August. Recently, a Tesla car crashed in Russia.

Tesla shares have fallen

Tesla shares (TSLA) fell 2.7% in August. So far the stock has dropped nearly 30% in 2019. NIO (NIO) has performed even worse. The company will release its second quarter earnings on August 15. A lot of negative news has hit Tesla stock this month. According to Reuters, "a Tesla Model 3 electric car caught fire after crashing into a parked trailer on a Moscow highway late Saturday, with the Tesla driver saying he failed to see the vehicle he collided with." Although it was not "In some fatalities, the driver was seriously injured.


Reuters also reported that "Asked in a video posted on REN TV's website whether he uses a self-driving car driving system, the driver Alexei Tretyakov said he was in a helper mode in which he was still holding the steering wheel." Notably, the NHTSA (National Highway Traffic Safety Administration) issued citations to Tesla for Model 3 safety claims. The NHTSA also sent a cease and desist letter to Tesla CEO Ella Musk. Earlier this month, the family of a deceased Model 3 driver sued Tesla. The fatal accident occurred in Florida in March.

Tesla shares hit by negative news

In August, Tesla stock hit negative news. Last week, a Tesla owner sued the company for limiting charging capabilities of old batteries. Tesla bears rejoice when negative news hits the company. However, Tesla bulls have their side of the story, too. Unfortunately, several petrol cars crash every year. According to the NHTSA, on average, there were 102 crashes daily in 2017. However, a crash other than Tesla barely makes the headlines.

Why is Tesla a stock being disclosed?

Is Tesla's share sold out? Tesla is thrilled to report the news, whether it's crashes, lawsuits or problems with NHTSA. Tesla stock company and news are getting a lot of attention. As a result Tesla and Musk face the challenges directly. Last week, Musk retweeted, "@ NHTSAgov letter to @elonmusk should be thrown in the garbage @Tesla Should Proudly State # Model3 Is The Safest Car Even Proven By NHTSA." The tweet was after the NHTSA issued citations to Tesla on Model 3 safety claims.

Elon Musk

Musk tends to have problems with regulators. From Model 3 product ratings to a whiff of how to privatize Tesla, Musk's communication was outside the regulatory framework. The NHTSA did not approve Tesla using a "safest" description of its cars. Earlier, Tesla claimed that its Model S received a 5.4 NHTSA rating. Actually, the NHTSA does not rate a vehicle more than 5.

In the long run, foundations drive stocks. However, unnecessary controversies, ranging from President Trump's tweets to leaked emails, have impacted Tesla's stock in the short term. Along with Tesla's profitability, Musk's comments provide fodder for Tesla bears. Coincidentally, Tesla's second quarter loss was wider than expected. However, Tesla delivered a record number of cars during the second quarter.

Source link