Tesla's stock faced downward pressure following preliminary findings from the National Transportation Safety Board (NTSB) regarding a fatal crash involving a Model 3. On Wednesday, the NTSB reported that driver error was a significant factor in the June 19 incident in Katy, Texas, where a Tesla crashed into a home at speeds exceeding 70 miles per hour in a 30 mph zone. The crash resulted in the death of 76-year-old Martha Avila, who was inside the home at the time, according to Reuters.
Key Details
The investigation revealed that the 44-year-old driver, Michael Butler, had activated the vehicle's Full Self-Driving feature before the crash but accelerated the car to its maximum speed by pressing the accelerator pedal fully. This conclusion aligns with statements made by Tesla's vice president of AI software, Ashok Elluswamy, who noted that the driver had pushed the accelerator to 100% capacity. The NTSB's findings support Tesla's position that the crash was primarily due to human intervention rather than a failure of the vehicle's technology.
Background
In terms of stock performance, Tesla shares are trading below key moving averages, with the stock currently 2.1% below the 20-day simple moving average (SMA), 4.8% below the 50-day SMA, and 6.5% below the 200-day SMA. The relative strength index (RSI) stands at 45.85, indicating neutral momentum, which suggests that neither buyers nor sellers have a strong advantage at this time.
Tesla's stock performance is likely to be influenced by ongoing concerns regarding safety and regulatory scrutiny, particularly in light of the NTSB's findings. Investors may react to potential implications for the company's Full Self-Driving technology and its overall safety record.
Watch for further developments from the NTSB as they continue their investigation, which could impact investor sentiment and stock performance.