Tesla Inc (NASDAQ: TSLA) is off to a relatively rough start in the pre-market hours this morning after the Insurance Institute for Highway Safety (IIHS) released information with regard to the Model S. Unfortunately, the news proved to be negative, causing concerns among investors and sending the value of the stock downward. As is normally the case, our partners at Trade Ideas were the first to alert us to the losses. At the moment (8:51), TSLA is trading at $317.40 per share after a loss of $9.69 per share or 2.96% thus far today.
TSLA Misses The Mark For The Top Safety Award
As mentioned above, Tesla isn’t having the best of days in the market today after it was announced that the new Model S failed to receive the top safety award from the IIHS. The issue had to do with the performance of the seat belt in the vehicle. Unfortunately, the Model S seat belt allowed the test dummy’s torso to move too far forward. As a result, the dummy’s head hit the steering wheel through the air bag. While the Model S did earn TSLA an “acceptable” rating, the car failed to earn the top safety award. Something that investors were hoping for. In their report, the IIHS had the following to offer:
“The main problem with the performance of the Model S was that the safety belt let the dummy’s torso move too far forward, allowing the dummy’s head to strike the steering wheel hard through the airbag.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TSLA. In particular, we’re interested in seeing how failing to achieve the IIHS top safety award will reflect on sales of the Model S. We’ll continue to follow the story closely and bring the news to you as it breaks!
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