Following the headlines below, and confirmation from Loup
Ventures' Gene Munster that Tesla will miss Q1 Model 3
production numbers (not a huge surprise to most), TSLA shares are
rolling over quickly in the pre-market..
shares have plenty of downside to reconnect to bonds' version of
by Quoth The Raven
two days of trading turmoil for Tesla, catalyzed by reports
of an NTSB investigation into the company
involving a fatal Model X accident, more details have emerged that
are anything but reassuring for the company. An ABC
News report that
got very little media visibility, reported
that the Apple engineer who died from crashing his Model X had
previously complained about Tesla's autopilot feature.
report goes on to say:
Huang's family tells Dan Noyes he took his Tesla to the dealer,
complaining that -- on multiple occasions -- the
auto-pilot veered toward that same barrier --
the one his Model X hit on Friday when he died.
the crash, Tesla has only made limited commentary, still not
confirming as to whether or not auto-pilot was definitely engaged
at the time of the crash. Instead, the company has come out in a
blog post and blamed the lack of a highway safety barrier as the
reason the crash was as severe as it was. From a March
27 Tesla blog post:
reason this crash was so severe is that the crash attenuator, a
highway safety barrier which is designed to reduce the impact
into a concrete lane divider, had either been removed or crushed
in a prior accident without being replaced. The following image
shows what the barrier looked like when the crash attenuator was
in proper condition, and what it looked like the day prior to
the crash, based on dash cam footage from a witness of the
accident who commutes daily past this location.
shares of Tesla are down almost 50 handles in the last two days
and the company's bond
yields spiked significantly yesterday, indicating a
seriously increased concern with the company‘s ability to generate
cash or earnings with any type of consistency. Even CNBC had harsh
words for the company yesterday, stating it could be an "easy
move" for the stock to push under $200.
Moody’s had downgraded the company's credit rating on
Tuesday afternoon of this week, which was a point of
discussion during Quoth the Raven's most recent podcast covering
Tesla's recent stock price decline, this fatal crash and the
executive turnover at the company.
addition, it also comes days after a 73% approval by shareholders
of Elon Musk's insane new potential $55
billion compensation package, which has milestones based on
metrics like market cap and revenue - data points that can grow
and meet targets without the company ever technically needing to
be profitable or cash flow positive.
Tesla report comes just one day after a self-driving vehicle in
San Francisco was ticketed for
getting "too close to a pedestrian":
self-driving car was slapped with a ticket after police said it
got too close to a pedestrian on a San Francisco street.
self-driving car owned by San Francisco-based Cruise was pulled
over for not yielding to a pedestrian in a crosswalk. Cruise
says its data shows the person was far away enough from the
vehicle and the car did nothing wrong.
for right now the future of Tesla - and autonomous driving - both