Why Tesla Stock Fell on Friday

Galtero Lara
May 18, 2019

Moreover, the investors are also now wary of the claims made by the Tesla's founder Elon Musk as he claims that its self-driving cars can help the company's stock reach the $500 million market cap but instead it could not even manage a decent profit in the recent quarter.

Tesla shares closed at the lowest level in nearly 2 1/2 years after Elon Musk called for a "hardcore" review of all the electric-car maker's expenses and an analyst warned of potentially severe fallout from a fatal crash involving Autopilot. He said in an email to employees, "Going forward, all expenses of any kind anywhere in the word, including parts, salary, travel expenses, rent, literally every payment that leaves our bank account must (be) reviewed".

The Delray Beach crash casts doubt on Musk's statement that Tesla will have fully self-driving vehicles on the roads sometime next year.

"When your revenues aren't improving, you have to look at other ways to boost the bottom line, and that's continued cost cutting", said CFRA Research analyst Garrett Nelson.

More news: One Little Update Could Keep Teslas From Catching Fire

Tesla Inc's Autopilot system was engaged during a fatal March 1 crash of a 2018 Model 3 in Delray Beach, Florida, in at least the third fatal US crash reported involving the driver-assistance system, the National Transportation Safety Board said on Thursday.

In a preliminary report on the March 1 crash, the NTSB said that initial data and video from the Tesla show that the driver turned on Autopilot about 10 seconds before the crash on a divided highway with turn lanes in the median. There have also been a number of non-fatal Tesla crashes involving Autopilot.

The accident bore an eerie similarity to a Florida highway crash three years earlier, when Joshua Brown was killed when his Tesla passed under a semi truck that was crossing a highway in Williston, Fla.

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