Tesla Motors Inc (NASDAQ: TSLA)
The world is pushing toward autonomous vehicles, and Tesla, like Google and so many others, is currently in the race to build one first. However, today, news broke that makes the future look dim for the self-driving cars from the company. Today, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to TSLA ahead.
What We’re Seeing From TSLA
As mentioned above, Tesla is taking a dive in the market today. The downward movement started as soon as the opening bell rang. Unfortunately for the stock, the movement hasn’t stopped. Currently (10:35), TSLA is trading at $183.54 per share after a loss of $6.52 per share (3.43%) thus far today.
Why The Stock Is Falling
As soon as we saw the spike downward on TSLA, the CNA Finance team went into action, digging up the reason for the drop. It didn’t take very long to find the cause. It had to do with the company’s self-driving car.
Recently, Tesla released a report that gave investors information with regard to the vehicle. In the report, the company outlined several bits of data, but one seems to be grabbing everyone’s attention, and that is collisions. Unfortunately, the company’s own report shows that its autonomous vehicles cause more car accidents than human drivers. Unfortunately, this is a big hit to the TSLA self-driving car program and a big hit to the stock.
What We’ll Be Watching For Ahead
While the news that came out with regard to TSLA was indeed overwhelmingly positive, there is still quite a bit we don’t know. Importantly, we don’t know if the accidents happened in beginning stages and the bugs have been worked out. Nonetheless, this is a big hit to Tesla, and we will be watching the story closely as it develops!
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