A bearish analyst note also dragged down the stock.
"Since then, Autopilot has improved further", Tesla says.
It's been a brutal month for Tesla: Analysts are anxious about delays shipping its new Model 3, and say it will soon face a cash crunch. "According to witnesses, that appears to be what happened here, as we understand there were no occupants still in the Model X by the time the fire could have presented a risk". Vetr upgraded shares of Tesla from a "sell" rating to a "hold" rating and set a $336.07 price objective for the company in a research report on Monday, February 5th. The driver's LinkedIn profile identifies him as a software engineer who joined Apple Inc.in November after more than a decade at Electronic Arts Inc.
On Tuesday, the National Transportation Safety Board announced it is opening an investigation into a fatal auto crash involving a Tesla in California last week.
Tesla's battery packs are designed so that when a fire occurs, it spreads slowly so people have more time to exit or be removed from the auto. Issues examined include: "post-crash fire, steps to make vehicle safe for removal from scene", said the NTSB.
"The reason this crash was so severe is that the crash attenuator, a highway safety barrier which is created to reduce the impact into a concrete lane divider, had either been removed or crushed in a prior accident without being replaced", Tesla wrote in the blog post. Tesla owners have driven the same highway stretch with Autopilot engaged about 85,000 times since the system was introduced, and no accidents have been reported that the company is aware of, the carmaker said.
"2018 will be a transformative year for Tesla, with a high level of operational scaling", Musk said in a statement. Musk vowed to demonstrate a fully autonomous Los Angeles-to-New-York cross-country trip by the end of 2017, but that date has slipped. And that's not good news for TSLA stock, given that Autopilot is one of the key features of Tesla cars.
The company responded by modifying the vehicle to better facilitate driver engagement while using Autopilot. Other carmakers are supplementing their systems with a laser-based system called lidar.
An Arizona woman was killed after being struck by a self-driving Uber vehicle, an incident believed to be the first of its kind. The pedestrian died from the collision.
This week, Moody's downgraded Tesla's corporate rating to B3 from B2, citing a lackluster production rate of the Model 3, while short sellers continue to bet against Tesla's stock and its high-yield bond.
Pulling that off will likely depend on Tesla proving it can hit its lowered Model 3 production targets for this quarter and the next.
Moody's said its negative outlook for Tesla "reflects the likelihood that Tesla will have to undertake a large, near-term capital raise in order to refund maturing obligations and avoid a liquidity shortfall". There are plenty of bitterness on the Model 3 such as the poor build quality and cheap interior but the biggest pain which you will experience is with the wait for the vehicle's delivery. While investors were doubtful that his auto startup could even make an electric vehicle, Musk succeeded in building a company that now competes against some of the industry's most powerful, long-standing leaders, with its Model S sedan receiving the highest quality ratings.