Tesla Shares Plummet 8% Due to Doubts on Model 3 Production

Shares of American electric-car maker Tesla Inc lost more than 8% during the most recent trading session. This was shortly after the National Safety Board posted through Twitter that it has assigned two investigators to look into the recent crash of a Tesla Model X vehicle last week in California. 

Tesla shares are also trading weaker in the midst of market concerns regarding the company’s Model 3 production. The said vehicle which was released last year has repeatedly missed production targets since the past quarters and has concerned investors to whether the company will be able to deliver on its massive targets.

Model X Car Crash

Tesla shares which fell 8.2% during Tuesday’s trading session was recorded to be the stock’s biggest losses during the year as a second investigation regarding a Tesla car crash was announced by the United States National Transportation Safety Board,

An accident involving a Tesla Model X SUV took place earlier this week near Mountain View, California where the said vehicle flipped into oncoming lanes that struck two vehicles. According to the U.S. NTSB, it is currently unclear whether the vehicle’s automated control system or the popularly known Tesla autopilot system was active during the time of the crash.

Tesla has stated its sympathy in regards to the accident as well as its full cooperation with the authorities in the investigation of the accident. Tesla has also stated in a blog post on Tuesday that it still hasn’t been able to pinpoint the cause of the car crash. The logs of the car’s computer also has not yet been accessed by the company or other authorities due to the amount of the damage the car suffered. 

The post also revealed a concrete divider that the involved Model X has been able to hit long metal barrier which was placed to reduce impact to the concrete lane divider which has not yet been replaced or removed following the accident. Tesla also has not stated to whether the vehicle’s Autopilot mode was operating at the time of the crash. Tesla vehicles have been previously reported to be involved in car crashes before. One accident includes a crash back in 2016 where a driver was killed while the vehicle was in Autopilot mode. The investigation held by the NTSB revealed that the driver should have monitored the progress of the car as the system indicated.

Model 3 Production and Deliveries

Tesla, who has missed on Model 3 deliveries and production over the past year is currently in the middle of growing investor doubt to how the company will be able to meet its own targets and produce as much as 5000 Model 3 vehicles despite being able to produce a total of 260 vehicles last October.

Shares of the company has lost ground over the past couple of quarters after it missed delivery and production targets on the mass-market vehicle which received more than 400,000 in pre-orders and reservations.

Earlier this year, Tesla have denied any issues in the production of the Model 3 and stated that it is on track for the production of the said vehicle. Reports then have claimed that the company faced issues on its battery production.

During the fourth quarter, Tesla posted a delivery of 1,500 Model 3 vehicles, far from its initial targets of 4,1000 vehicles. Tesla then announced that it would reduce its target of 5,000 Model 3s being produced at the end of the second quarter which would make it the most recent targets set by the company.

See more: Chief Accounting Officer of Tesla Leaves the Company

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