After a fiery fatal crash of a Model S car over the weekend led to a greater pessimism about electric vehicle supplies, Tesla Inc.’s shares dropped the most in a month. Elon Musk’s automaker’s stock fell as much as 6.5 percent in New York and was under increased pressure at midday after the National Highway Transportation Safety Administration announced that it had opened an investigation into the accident. Although investigators focus on the circumstances surrounding the crash, industry observers are worried that EV newcomers will quickly lose their competitive advantage when mass-market competitors such as Mercedes-Benz AG and Stellantis NV introduce their own versions.
Stellantis announced last week that it would speed up the transition to electric vehicles, predicting that by the middle of the decade, battery-powered vehicles would account for more than a third of its European sales. Mercedes-Benz has already unveiled the EQS, the first all-electric vehicle that the 94-year-old firm will market in the United States. Ferrari NV expects to unveil its first entrant in 2025, and Mercedes-Benz has already debuted the EQS, the first all-electric car that the 94-year-old company will sell in the United States. Similar changes were made by General Motors Co., Ford Motor Co., and Volkswagen AG earlier this year, all of which announced aggressive EV strategies.
According to Bloomberg Intelligence analyst Kevin Tynan, Tesla’s lead in global battery-electric vehicle sales slipped one percentage point to 24 percent in 2020 from 2019. Meanwhile, “the Volkswagen Group’s market share increased to 9% in 2019 from 4% in 2019, on track to overtake Tesla in 2023 and an indication that existing automakers may win rapidly until committed to the drivetrain technology.” In the face of this backdrop, Elon Musk’s Tesla stock fell to $691.80 in New York, the lowest intraday level since March 18. The accident made the situation very controversial and as a result, the demand for the online brokers to buy stocks of Tesla was massively declined, which directly affected the price as the demand decreased. Nikola Corp., Workhorse Group Inc., Lordstown Motors Corp., and Fisker Inc. were among the smaller EV stocks that fell.
The accident that killed two passengers accelerated Tesla’s downfall. No one claimed to be speeding, according to local police, and none of the victims were identified in the driver’s seat. Federal officials have previously chastised Tesla for fire hazards associated with its battery packs and for failing to do enough to prevent drivers from abusing its driver-assist feature. Tesla’s stock price has lately been impacted by mixed Wall Street news. Though one of Cathie Wood’s Ark Investment Management funds sold some shares last week, Goldman Sachs advised investors to buy the company after increasing its EV revenue penetration outlook.
The EV market leader’s stock has been down this year, with Tesla’s stock barely altered since the beginning of 2021, in stark contrast to 2020’s spectacular rally. On April 26, the company is expected to release its first-quarter earnings.
Elon Musk response
As the 2019 Tesla Model S struggled to navigate a curve on a twisting road, it was traveling at a high speed. The victims were discovered in the front passenger seat and the rear of the car, all in their 50s. Autopilot was not enabled, according to data retrieved so far, according to Tesla’s CEO.
“No one was driving the car at the time of impact,” Mark Herman, a constable with Harris County Precinct 4, said, adding that the case was still under investigation. Elon Musk, the company’s CEO, tweeted, however, that data logs recovered so far indicate Autopilot was not turned on. Furthermore, regular Autopilot would entail the activation of lane lines, which this street lacked.
Tesla’s Autopilot is a sophisticated driver assistance feature that “improves safety and comfort behind the wheel,” according to Tesla.
Tesla’s Self-Driving Cars
Mr. Musk has previously stated his intention to have “completely self-driving” vehicles available this year. However, the National Highway Traffic Safety Administration in the United States launched investigations into 27 Tesla-related accidents last month. According to Bloomberg, a Tesla owner climbed on top of a car at the Shanghai Auto Show on Monday to complain that the “brake lost power.” The Model S has also been involved in a number of explosions. Following another event involving a Sedan S model in France in 2016, a Tesla car powered by British TV director Michael Morris burst into flames in 2018. Several fires involving Tesla Model S cars occurred in 2013.
After a fiery fatal crash of a Model S car over the weekend led to a greater pessimism about electric vehicle supplies, Tesla Inc.’s shares dropped the most in a month. Elon Musk’s automaker’s stock fell as much as 6.5 percent in New York and was under increased pressure at midday after the National Highway Transportation Safety Administration announced that it had opened an investigation into the accident. Although investigators focus on the circumstances surrounding the crash, industry observers are worried that EV newcomers will quickly lose their competitive advantage when mass-market competitors such as Mercedes-Benz AG and Stellantis NV introduce their own versions.
Stellantis announced last week that it would speed up the transition to electric vehicles, predicting that by the middle of the decade, battery-powered vehicles would account for more than a third of its European sales. Mercedes-Benz has already unveiled the EQS, the first all-electric vehicle that the 94-year-old firm will market in the United States. Ferrari NV expects to unveil its first entrant in 2025, and Mercedes-Benz has already debuted the EQS, the first all-electric car that the 94-year-old company will sell in the United States. Similar changes were made by General Motors Co., Ford Motor Co., and Volkswagen AG earlier this year, all of which announced aggressive EV strategies.
According to Bloomberg Intelligence analyst Kevin Tynan, Tesla’s lead in global battery-electric vehicle sales slipped one percentage point to 24 percent in 2020 from 2019. Meanwhile, “the Volkswagen Group’s market share increased to 9% in 2019 from 4% in 2019, on track to overtake Tesla in 2023 and an indication that existing automakers may win rapidly until committed to the drivetrain technology.” In the face of this backdrop, Elon Musk’s Tesla stock fell to $691.80 in New York, the lowest intraday level since March 18. The accident made the situation very controversial and as a result, the demand for the online brokers to buy stocks of Tesla was massively declined, which directly affected the price as the demand decreased. Nikola Corp., Workhorse Group Inc., Lordstown Motors Corp., and Fisker Inc. were among the smaller EV stocks that fell.
The accident that killed two passengers accelerated Tesla’s downfall. No one claimed to be speeding, according to local police, and none of the victims were identified in the driver’s seat. Federal officials have previously chastised Tesla for fire hazards associated with its battery packs and for failing to do enough to prevent drivers from abusing its driver-assist feature. Tesla’s stock price has lately been impacted by mixed Wall Street news. Though one of Cathie Wood’s Ark Investment Management funds sold some shares last week, Goldman Sachs advised investors to buy the company after increasing its EV revenue penetration outlook.
The EV market leader’s stock has been down this year, with Tesla’s stock barely altered since the beginning of 2021, in stark contrast to 2020’s spectacular rally. On April 26, the company is expected to release its first-quarter earnings.
Elon Musk response
As the 2019 Tesla Model S struggled to navigate a curve on a twisting road, it was traveling at a high speed. The victims were discovered in the front passenger seat and the rear of the car, all in their 50s. Autopilot was not enabled, according to data retrieved so far, according to Tesla’s CEO.
“No one was driving the car at the time of impact,” Mark Herman, a constable with Harris County Precinct 4, said, adding that the case was still under investigation. Elon Musk, the company’s CEO, tweeted, however, that data logs recovered so far indicate Autopilot was not turned on. Furthermore, regular Autopilot would entail the activation of lane lines, which this street lacked.
Tesla’s Autopilot is a sophisticated driver assistance feature that “improves safety and comfort behind the wheel,” according to Tesla.
Tesla’s Self-Driving Cars
Mr. Musk has previously stated his intention to have “completely self-driving” vehicles available this year. However, the National Highway Traffic Safety Administration in the United States launched investigations into 27 Tesla-related accidents last month. According to Bloomberg, a Tesla owner climbed on top of a car at the Shanghai Auto Show on Monday to complain that the “brake lost power.” The Model S has also been involved in a number of explosions. Following another event involving a Sedan S model in France in 2016, a Tesla car powered by British TV director Michael Morris burst into flames in 2018. Several fires involving Tesla Model S cars occurred in 2013.