Tesla Stock: Will It Go Down due to Company’s Arrogance?
Coinspeaker
Tesla Stock: Will It Go Down due to Company’s Arrogance?
Last week we were witnessing of a sudden “fallout” of one of the biggest carmakers in the world – Tesla. An American division received a driver’s complaint that his Tesla suddenly accelerated on its own. And probably it will be not very sensible to suppose that such an event won’t have any influence on Tesla stock. However, we should admit that in recent months it has been on the rise.
An independent investor, Brian Sparks, abided a sue to the National Highway Traffic Safety Administration and its Office of Defects Investigations asking them to look into the drivers’ claims.
127 Complaints Submitted
The sue consisted of 127 complaints mostly submitted to the government by Tesla owners. Some were submitted by the others filing on the behalf of the owners. All of these complaints, when itemized, depose that inadvertent acceleration of Tesla cars may have subsidized to or caused 110 crashes and 52 injuries.
Sparks also mentioned that he directed the most important investigations and abided the petition. CNBC reported that Sparks is “currently shorting Tesla stock, but has hedged his bets and been long shares of Tesla in the past.”
The thing that happened was that Terry was driving a new 2019 Tesla Model 3 back in the summer of 2019. And while everything was nice and dandy until then, the vehicle’s systems suddenly apparently failed and the car immediately accelerated. She somehow managed to take control of the car, but was, as you would expect, shaken by the incident.
She said she immediately contacted the company and asked for an urgent service assignment. However, from the company they told her to wait for several weeks. Just after the one week, Terry was waiting to have the car gauged and the same thing happened again.
Terry decided this wasn’t nor time nor place to be joking with her own life because this time a “sudden unintended acceleration (SUA)” led to a four-car crash that injured two people. In her driver complaint to NHTSA in July 2019, Terry also said that some airbags in her vehicle failed to react.
Tesla Not Responding
And even though Terry asked for data and a resolution from Tesla, the company still has not provided any diagnosis about the case.
Sparks commented:
“I briefly looked on the NHTSA website to see if other Tesla drivers experienced the same. I didn’t expect to see such a large number of [sudden unintended acceleration] complaints, most with similar fact patterns. That’s when I decided to dig in.”
On the other hand, NHTSA responded and noted that the range of these accusations are pretty much shallow and could be talking about 500,000 Tesla cars including Model 3, Model S and Model X sedans and SUVs, all made from 2013 through 2019.
Once it estimates the capacity of this petition, NHTSA, the company that has the possibility to authorize car recalls, or recalls of components and other vehicle technology, will decide if it should begin an official probe. If it not to chooses not to begin a probe, it will be needed to explain the reasons. It will be also needed to do an entry on a federal registry.
Ajit Alkondon is named as the NHTSA investigator assigned to evaluate the petition. The Department of Transportation (and NHTSA) was always charged in the past for receiving receives numerous accusations about conceivable accidental acceleration incidents in a huge number of vehicles.
Tesla cars are made up on the new technologies, as is for example the company’s signature advanced driver assistance system, Autopilot, and “Ludicrous mode” acceleration, that enables drivers of some Model 3 variants to go from 0 to 60 mph in less than 4 seconds.
Be it as it may, Tesla was forced to make a statement on Monday saying it has checked on the data on all incidents in which data is available, but did not provide details on such data.
They wrote:
“This petition is completely false and was brought by a Tesla short-seller. We investigate every single incident where the driver alleges to us that their vehicle accelerated contrary to their input, and in every case where we had the vehicle’s data, we confirmed that the car operated as designed.”
At the time of writing the stock was down 0.32% in the premarket trading, selling for $508,85.