Wall Street is taking a pause on Thursday as U.S. stocks and even the price of gold pull back from record highs following their torrid runs.
Safety investigations and the bully pulpit could complicate the automaker's development of automated driving systems, but only if regulators want to.
Elon Musk's Tesla is facing a fresh federal probe after its “Full Self-Driving” technology was linked to more than 50 traffic incidents and crashes.
Tesla Inc (NASDAQ:TSLA)'s Full Self-Driving (FSD) system has prompted the US National Highway Traffic Safety Administration (NHTSA) to open an investigation into about 2.9 million of the company's vehicles over potential traffic-safety violations. The US government agency stated that Tesla's FSD may have “induced vehicle behavior that violated traffic safety laws,” citing reports of Tesla vehicles running red lights or traveling in the wrong direction during lane changes.
The probe centers on Tesla vehicles running red lights and violating other traffic laws.
The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into Tesla's Full Self-Driving tech after receiving reports that the software caused vehicles to run red lights or cross into wrong lanes.
When Tesla directors offered Elon Musk the biggest executive pay package in corporate history in September, it reassured investors that he would have to achieve the equivalent of “Mars-shot milestones” to earn $878 billion in Tesla stock over 10 years.
Tesla's stock recoups some ground after Model Y, Model 3 “Standard” disappointment.
Tesla rolled out “affordable” versions of its best-selling Model Y SUV and its Model 3 sedan, but the starting prices of $39,990 and $36,990 struck some as too high to attract a new class of buyers to the electric vehicle brand.
The Tesla stock has outperformed in September, driven primarily by enthusiasm over CEO Elon Musk's $1 billion share purchase in the company. Strong Q3 delivery results, followed by the swift anticipated release of the more affordable Model Y this month also suggests a smooth transition as U.S. EV tax credits phase out. Another potential long-term catalyst for the stock also includes the upcoming Annual General Meeting on November 6, where shareholders will vote on an unprecedented $1 trillion pay package for Musk.
There was no $25,000 electric car this time. Tesla Inc's (NASDAQ:TSLA) long-promised budget model has been shelved, replaced instead by cheaper versions of its existing Model 3 and Model Y.
Tesla's robotaxi launch, UnitedHealth's cost challenges, and Shopify's AI-driven merchant tools headline Zacks' latest research roundup.