Home Technology Tesla Motors Inc Stock Dives Post California Crash

Tesla Motors Inc Stock Dives Post California Crash

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Tesla Motors Inc (NASDAQ:TSLA) shares tumbled 2.9% to $222.66 on Monday after the severe crash of Model S spread all over the media. The EV manufacturer is waiting for the results and permission to examine the vestiges of the vehicle.

Severe accident hurt shares

At a speed of 100 mph, Model S bumped into several cars before smashing into a pole in West Hollywood. After the crash the small cells of the lithium batteries popped out of the battery, burning and shooting up in the air.  The intensity of the wreckage was so much that the car sliced into two.

Prior to this accident, there was a similar accident in Mexico, involving Model S. Both the accidents did not claim any lives, and the drivers were safe. After stealing the Model S, the driver was thrown out of the car and suffered some serious injuries as per the television report.

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk said that he is somewhat pleased that there were no serious injuries in any accident with Model S. Around Tesla 30,000 vehicles have been sold till date, of which atleast three to four vehicles caught fire after hitting some other object. Tesla fitted an underbody in the car following two accidents, where Model S hit the road debris and caught fire.

2Q deliveries a concern for Tesla

Yesterday, Barclays’ analyst Brain Johnson released a report on Tesla following which the shares took a dip. The analyst mentioned that EV manufacturer could perform below the expectations for unit deliveries in the second quarter, and analyst gave the weak outlook on Model S deliveries in Europe and North America. Johnson put thrust on the China sales, which is expected to become one of the largest markets, in the future.

Barclays estimates that a number of deliveries in Europe will come down in the range of 2,400-2,500 units, a drop from 3,100 units in the first quarter. Norway has seen a lower than expected sales, which will affect the overall unit delivery for Tesla. The research report, also, suggests that the demand in Europe in declining consecutively and growth in delivery will be saturated, in the future.

Barclays’ core area of concern is dim sales in the North America for Tesla. At present, Tesla Motors Inc (NASDAQ:TSLA) has managed to sell 1,100 units in North America in April.

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Aman Jain
Personal Finance Writer

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