Tesla Stock Plunge Continues Below Key Level On Model 3 Car Woes
Shares of Tesla (TSLA) undercut a key support level Tuesday as it was sideswiped by self-driving-car troubles.
The stock tumbled 8.2% to close at 279.18, falling below a key support level of 290-300 that has held up since the spring of 2017. Tesla fell to a one-year low as trading volume doubled. The stock's Relative Strength line also hit a one-year low, and shares are well below their 200-day moving average.
The U.S. National Transportation Safety Board on Tuesday said it is conducting an investigation of the fatal crash Friday involving a 2017 Tesla Model X, and a major vehicle fire that resulted, on Highway 101, near Mountain View, Calif. The vehicle hit a barrier and, moments later, an approaching Mazda and Audi hit the Tesla.
The NTSB said it was unclear if the automated control system was active at the time of crash.
2 NTSB investigators conducting Field Investigation for fatal March 23, 2018, crash of a Tesla near Mountain View, CA. Unclear if automated control system was active at time of crash. Issues examined include: post-crash fire, steps to make vehicle safe for removal from scene.
— NTSB_Newsroom (@NTSB_Newsroom) March 27, 2018
The move comes a week after an Uber Technologies self-driving car hit and killed a woman crossing a street in Tempe, Ariz. Uber, which uses Nvidia chips, suspended North American tests of its self-driving vehicles due to the crash. Nvidia also has partnerships with Volkswagen and Audi.
Further, Uber said Tuesday it would not seek to renew its permit for self-driving cars in California, reports said. Uber's permit expires March 31.
Tesla chip supplier Nvidia (NVDA) also went into reverse after the the chip developer on Tuesday said it would temporarily suspend autonomous-driving tests. Nvidia shares fell 7.8% to finish at 25.52 on the stock market today, breaking below their 50-day moving average.
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