Tesla Blames Model X Fatal Crash Severity on Highway Barrier

Google Street View of U.S. Highway 101  Dashcam

Google Street View of U.S. Highway 101 Dashcam

Tesla stock tanked on Tuesday and continued to dive on Wednesday, falling by about 9% to its lowest level in a year. The credit rater cited "the significant shortfall in the production rate of Tesla's Model 3" and liquidity pressures as two chief concerns.

"The rating will also be pressured if the company is unable to raise sufficient new capital to cover its late-2018 and early-2019 convertible maturities, and to cover the operating cash consumption that will likely continue into 2019". Stocks also fell sharply on Thursday and Friday on worries about President Donald Trump's trade policies, but those fears have receded somewhat in the last couple of days.

The pace of production for the Model 3 has been very slow hence making it right to say that the vehicle is at risk of getting destroyed by the upcoming BMW i4.

Bernstein analyst Max Warburton on Wednesday pointed to heavy reliance on automation at Tesla's Fremont plant as a key factor behind the troubled Model 3 production ramp-up.

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

Tesla rolled out the Autopilot function in 2015. Rescuers freed the man but he died later at a hospital.

"We are now working closely with the authorities to recover the logs from the computer inside the vehicle", Tesla said in a statement. "And there has never been an accident that we know of", according to the Tesla blog. Musk's rocket company SpaceX, once near bankruptcy, inked a massive government contract and is now a leader in its industry. First Republic Investment Management Inc. boosted its position in shares of Tesla by 0.7% during the 3rd quarter.

In a recent statement, Tesla Motors defended the Autopilot feature in a Model X SUV involved into a fatal crash in Northern California on Friday.

In terms of the fire that broke out after the crash, Tesla wrote its battery packs are created to help fires spread slowly in case a fire breaks out, which appeared to be the case in this instance.

The NTSB has no powers to order a general recall of cars if its investigation uncovers a flaw in the Tesla Autopilot software.

The agency told Reuters that it had opened an investigation into the crash, which took place last week.

Tesla's Autopilot allows drivers under certain conditions to take their hands off the wheel for extended periods. The LA Times revealed that they are now examining an incident from January this year involving a Tesla vehicle and its autonomous driving system.

"As a reality check, Tesla is worth twice as much as Ford [estimate of the enterprise value of both companies], yet Ford made six million cars past year at a $7.6 billion profit, while Tesla made 100,000 cars at a $2 billion loss", Thompson said. That crash raised questions about the safety of systems that can perform driving tasks for long stretches but cannot completely replace human drivers.

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