Tesla crash investigation causes dip in 'leccycar firm's share price

Bloomberg’s Craig Trudell discusses Tesla pulling out all the stops to hit its production goals

Tesla shares have experienced big swings in the past, as worries about losses have vied with enthusiasm for Chief Executive Officer Elon Musk's ambitious plans. Given regulators' reaction to the fatal Uber crash, "we see a large risk" that the self-driving equipment and capabilities Tesla has been touting to customers many not meet the eventual government standards, he wrote.

As for the severity of the crash, the company pointed to a highway safety barrier that was modified. Two NTSB investigators will examine the post-crash fire that engulfed the Tesla Model X and evaluate the steps taken to safely remove the vehicle from the scene. Investigators are interested in finding why the collision was so severe and how the vehicle caught fire.

Tesla Motors Inc (NASDAQ:TSLA)'s stock on Tuesday traded at beginning with a price of $304.00 and when day-trade ended the stock finally plunged -8.22% to reach at $279.18.

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 reason this crash was so severe is that the crash attenuator, a highway safety barrier which is created to reduce the impact into a concrete lane divider, had either been removed or crushed in a prior accident without being replaced", Tesla wrote.

The NTSB has no powers to order a general recall of cars if its investigation uncovers a flaw in the Tesla Autopilot software.

Shares of Tesla, Inc. took a dip of more than 7%, or $22 to reach an intraday low of $281.

Tesla also said its owners have driven the same stretch of road with Autopilot on about 85,000 times since 2015, and to its knowledge, there has never been a crash. The pedestrian died from the collision. Catawba Capital Management VA now owns 2,935 shares of the electric vehicle producer's stock valued at $914,000 after purchasing an additional 165 shares in the last quarter. "It's going to be harder for them to raise money".

Tesla crash investigation causes dip in 'leccycar firm's share price

Moody's warned it could downgrade the company further if Tesla falls behind the updated production targets for the vehicle, and changed the outlook on Tesla to negative from stable.

An analyst at Citigroup Inc. wrote Tuesday that Tesla may be struggling to convert vehicle shoppers into Model 3 buyers, while Robert W. Baird & Co. said Monday the company might not achieve its weekly production goal by the end of March.

The Investor Service has a Negative outlook on Tesla, down from a Stable one previously.

Bernstein analyst Max Warburton on Wednesday pointed to heavy reliance on automation at Tesla's Fremont plant as a key factor behind the troubled Model 3 production ramp-up.

Tesla wasn't able to retrieve the data logs due to the severity of the crash, but it now nonetheless elaborates on the potential cause of the crash with first details released since the accident.

That puts the company in "crunch time" now to improve margins, Cowen & Co. analysts led by Jeffrey Osborne said in a note Tuesday. 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.

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