TSLA in freefall after second fatal self-driving car crash
(FinancialPress) —Electric carmaker Tesla is facing a rain of criticism and astonishing losses after one of its cars caused the second fatal car crash in its records last week.
The month of March has not been kind to to the Silicon Valley based company, as it has seen its shares drop 15% just last week – and specialists believe there is more pain on its way.
One of the company’s Model X SUVs caused a fatal crash while driving on autopilot. This has brought about more unwanted scrutiny on the company, which was already undergoing a difficult massive recall of its Model S cars, albeit for unrelated reasons. The recall saw Tesla withdraw 120,000 car units from the market to fix an issue with corrosive bolts in the power steering.
These woes have added fuel to the ongoing fire that’s been raging between the company and its investors. The company’s lack of revenue is quickly eroding patience among debt holders. Other factors weighing in on their disappointment in its results are the repeatedly missed production targets and the fact that major credit rating agency Moody’s recently knocked down its credit score, due to the aforementioned delays in production and heavy reliance on debt financing.