Tesla shares in hot water following fatal crash
Shares for Tesla Inc. dropped for the second day in a row. Questions are mouting concerning what caused a crash in California on Friday that involved Tesla’s Model X crossover vehicle. The accident killed the driver and only increased the pressure on Elon Musk and his electronic-car maker. The debate on automated vehicles continues, and the price seems to be human life.
Tesla has been unable to “retrieve the vehicle’s logs” which would explain some of the moments that lead up to the fatal crash. The company won’t reveal if the driver involved in the accident had engaged the Autopilot feature, but initially defended the safety features associated with the driving mode in an official blog post.
How far did their stocks plummet? Tesla shares fell “as much as 6.6 per cent to US$260.89 Wednesday, the lowest in the year” according to Business News Network.
The crash, being investigated by US authorities, adds to CEO Musk’s sales target challenges. With the new Model 3 sedan on its way, critics believe that the reliance Tesla and other companies have on automated vehicle settings is too early and under tested for the go ahead. This year has seen at least two high profile crashes from Tesla and one from Uber, all three are linked to automated vehicles.
All road users have valid questions about these self-driving features that continue to be tested and pushed despite the recent fatalities.
Tesla owners “have driven the same highway stretch” before the fatal accident occurred “85,000 times” with the Autopilot engaged. No accidents have been reported, as far as the company is aware.
“‘There’s just so much bad news right now,’ John Thompson, the chief executive officer of Vilas Capital Management LLC, which is shorting Tesla shares, said by phone. ‘You’ve got the NTSB investigating a new crash, Nvidia suspending autonomous testing, and Tesla can’t make the Model 3. When the stock goes lower like this, it gets harder to raise capital. It’s going to be harder for them to raise money.’”