Tesla Stocks Plunge, Tesla Cars Burn!

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 Shares of Tesla Inc recorded its biggest decline in a month following an incident involving a 2019 Model S car that killed two passengers last Saturday.


The company's shares fell 6.5% and received renewed pressure during the midday trading session after the National Highway Transportation Safety Administration launched an investigation into the incident.


Shares of Tesla fell as low as $ 691.80, recording its biggest daily decline since March 18.


Last Saturday, a Tesla car reportedly caught fire in Texas. According to local authorities, 'no one' was found driving the vehicle as no victim was found in the driver's seat.


Tesla had previously received criticism from Federal officials over the fire risks associated with battery packs in its cars and did not take appropriate steps to ensure Tesla drivers used the driving assistance function properly.


The company is expected to release its first quarterly report on April 26.



According to industry observers, the incident that hit Tesla is expected to give an ‘advantage’ to Tesla rivals such as Mercedes-Benz AG and Stellantis NZ which are launching their own electric car (EV) models.


Stellantis announced it will focus on the EV sector and projected EVs will account for more than a third of its sales in Europe by the middle of this decade.


Italian carmaker Ferrari NV plans to unveil its first EV in 2025 and Mercedes-Benz has launched the EDS, its first EV to be sold in the United States (US).


The announcement was followed by a similar move from General Motors Co. and Volkswagen AG which is planning EV production this year.


According to a Bloomberg report on April 14, Tesla shares declined by 1 percentage point to 24% in 2020 compared to 2019 while VW Group shares jumped 9% from 4% in 2019.


The development sees the VW Group on track to overtake Tesla in 2023 and signals that sustainable carmakers can make a quick profit once they are committed to ‘drivetain’ technology.

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