Another fatal accident in a Tesla Inc. vehicle and a bearish report about Elon Musk's struggles to mass-produce his first car drove the company's shares.
Police in southern Switzerland are investigating the death of a German man whose Tesla crashed into a guard rail last week and went up in flames, the Associated Press reported Tuesday. A Morgan Stanley analyst said earlier that the company had "structural" problems with the Model 3 sedan that made the sale of the crucial car less lucrative.
Tesla was investigated for weeks after several crashes with his vehicles have led to four deaths. Musk has criticized the media for his coverage of these incidents and criticized analysts for asking what he said "bonehead" and "dry" questions about the model 3 and cash position of the company during a May 2
"The challenges of ramping up production of Model 3 reflect fundamental issues of vehicle design, manufacturing process, and automation that can affect the profitability of the vehicle," wrote Adam Jonas, Morgan Stanley analyst, in his report. He lowered his price target by 23 percent to $ 291 and lowered its long-term projection of the company's profit margins.
Model 3 break
Tesla shares closed 2.7 percent at $ 284.18, having already fallen 3.9 percent shortly after the fall. The stock traded shortly after the record-breaking event after Reuters announced that the company would temporarily discontinue Model 3 production from May 26 to May 31 to repair assembly lines. Musk suggested in an e-mail to employees last month that the company would pause production this month for further factory upgrades.
Bloomberg News reached a police representative in Bellinzona, Switzerland, who said that no one was available for the deadly incident until Wednesday morning. A Tesla spokeswoman said the company was deeply saddened and cooperated fully with local authorities.
Tesla did not receive data from the car to determine if the autopilot driver assistance system was on, she said in an e-mail. "Super Screwed Up"
Musk, 46, sent a series of tweets on Monday criticizing journalists for not reporting that Tesla is doing what he says is the safest car on the road . He reiterated that the company would report quarterly safety-related data, starting after the three months to June.
"It's super messed up that a Tesla accident that leads to a broken ankle, the front pages and the ~ 40,000 people who died in US auto accidents last year alone, get almost no cover," Musk wrote regarding a Tesla crash in Utah.
The Utah driver told the AP that Tesla's driver assistance system autopilot was on when she slammed into a fire engine at about 60 mph. The company has also received no data from this car and does not know if autopilot was on, a spokeswoman said on Tuesday.
Two of the four active investigations of Tesla vehicle crashes  concern drivers who used autopilot.
"It certainly has to be better and we are working to improve it every day, but the enemy of the good is perfect," Moschk tweeted on Monday regarding autopilot. "A system that saves lives on balance and reduces injuries should be released."
Musk has heavily criticized media coverage of autopilot in the past. Months after a man from Ohio died on a Florida highway in April 2016, Tesla held a conference call with reporters to announce that the company introduced new hardware that is said to make their vehicles fully self-propelled
"If you stop people from using autonomous vehicles while writing an article that is negative, you kill people," Musk told reporters.
Musk made similar comments earlier this month during Tesla's similar comments Reward. He said that autonomous vehicle systems would not reduce the accident or death rate to zero, even though he claimed that current technology reduces the likelihood of death by half.
"It's really incredibly irresponsible of journalists with integrity to write an article to make people believe that Tesla's autonomy is less secure," said Musk. "Because people might turn it off and then die. Anyway, I'm really upset about it."
– With the support of Ryan Beene