Tesla Falls to One-Year Lows

Tesla Falls to One-Year Lows

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. It also "faces liquidity pressures due to its large negative free cash flow and the pending maturities of convertible bonds".

The Consumer Goods stock (Tesla, Inc.) showed a change of -8.16 percent from opening and finally turned off its business at $279.18 by scoring -8.22 percent on 27-03-2018.

Moody's said its negative outlook "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". Tesla's woes have played out most visibly in the stock market, with its shares suffering a two-day, 15 percent drop that's the biggest since 2016. Moody's estimates that the fledgling electric vehicle maker will need over $500 million to cover production operations over the next couple of quarters, alongside another $2 billion to cover planned capital expenditures.

The company logo is seen in front of a showroom of US vehicle manufacturer Tesla in Zurich, Switzerland March 28, 2018.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

Tesla also added that its company data shows Tesla owners have driven this same stretch of highway with Autopilot engaged roughly 85,000 times since Autopilot was first rolled out in 2015 and roughly 20,000 times since just the beginning of the year.

The kicker in this story is that no one knows yet whether the Model X was operating in Autopilot mode.

All Tesla vehicles "have the hardware needed for full self-driving capability at a safety level substantially greater than that of a human driver", the automaker says on its website.

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The company hasn't been able to retrieve the vehicle's logs and is working with authorities to do so, it said in a blog post Tuesday.

Government scrutiny of the Palo Alto, California company is mounting.

Earlier this week, the National Transportation Safety Board (NTSB) announced a probe into the issue.

The California Highway Patrol said the electric-powered Tesla Model X crashed into a freeway divider on Friday and then was hit by a Mazda before colliding with an Audi. The vehicle had caught on fire as well.

"Tesla battery packs are designed so that in the rare circumstance a fire occurs, it spreads slowly so that occupants have plenty of time to get out of the auto", Tesla says.

Tesla shares continued their selloff from a day earlier, tumbling 8% in trading Wednesday on news that US investigators were looking into a fatal March 23 crash involving a Tesla vehicle, and ongoing worries about the company's cash crunch. The agencies have not disclosed any findings, Reuters said.

TSLA, trading down 9% on Wednesday morning at $254.06, has fallen about 35% from its all-time high reached previous year and declined 18.5% over the the past three months. The driver, 38-year-old Wei Huang, was killed. Still, Tesla requires users to agree to keep their hands on the wheel "at all times" before they can use Autopilot.

Should the investigation find the Autopilot to have been activated, it would not be the first time Tesla's technology is involved in a deadly crash. "You've got the NTSB investigating a new crash, Nvidia suspending autonomous testing, and Tesla can't make the Model 3". That crash raised questions about the safety of systems that can perform driving tasks for long stretches but cannot completely replace human drivers. 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.

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