Tesla Share Price Drops 22% Due to Fatal Crash

Marcus Newton
March 29, 2018

"Unclear if automated control system was active at the time of crash". "It's really about the Model 3 production and ramp up, and the shorts are piling in". In the company's blog post, Tesla notes Autopilot reduces crash rates by 40 percent, according to an independent review by the USA government. Data from financial analytics firm S3 Partners indicates that Tesla stock is the second-biggest short among US equities, with only Apple being larger.

Tesla Inc shares fell sharply again on Wednesday, reeling from a credit downgrade of the electric vehicle maker by Moody's Investors Service, federal probes of a fatal crash and concerns about Model 3 production. While investors were doubtful that his auto startup could even make an electric vehicle, Musk succeeded in building a company that now competes against some of the industry's most powerful, long-standing leaders, with its Model S sedan receiving the highest quality ratings. Trading volume, or volume, is the number of shares or contracts that point towards the overall activity of a security or market for a given period.

The California Highway Patrol said the electric Model X crashed into a freeway divider on Friday and then was hit by a Mazda before colliding with an Audi. The ambitious vehicle maker said it wasn't clear whether or not the cars autopilot mode was engaged before the accident.

- A US agency said Tuesday it has sent investigators to look into a fatal crash and fire on a California highway that involved a Tesla electric SUV equipped with a semi-autonomous control system. In a blog post tonight, Tesla said it's not yet clear what happened in the time leading up to the accident.

The company hasn't been able to retrieve the vehicle's logs and is working with authorities to do so, according to a blog post. Tesla now says it will build 2,500 Model 3 vehicles per week by the end of the first quarter, and hit 5,000 per week by the end of the second quarter.

Tesla Share Price Drops 22% Due to Fatal Crash

Tesla battery packs are designed so that in the rare circumstance a fire occurs, it spreads slowly so that occupants have plenty of time to get out of the auto.

Tesla shares are sliding Wednesday, down 8.12%, after the electric-car maker was downgraded by Moody's. The severity of the accident is unprecedented, according to Tesla.

The agency told Reuters that it had opened an investigation into the crash, which took place last week.

Since Tesla launched Autopilot, the feature has been criticized for creating the illusion to drivers that their vehicle was autonomous. Still, Tesla requires users to agree to keep their hands on the wheel "at all times" before they can use Autopilot.

Tesla, one of founder Elon Musk's contributions to the world of technology and engineering, has been viewed by many as an overly-ambitious project that is shrouded in a ceaseless stream of hype. "Safety is at the core of everything we do and every decision we make, so the loss of a life in an accident involving a Tesla vehicle is hard for all of us". That crash raised questions about the safety of systems that can perform driving tasks for long stretches but cannot completely replace human drivers. Parallel Advisors LLC boosted its position in shares of Tesla by 12.7% during the 3rd quarter.

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Other reports by MaliBehiribAe

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