Why Tesla Hit a New 52-Week Low Today
On Monday, Tesla (NASDAQ: TSLA) stock hit its lowest level in about 18 months, and the shares continued to move further below the notable $200 level Tuesday. As of 1:53 p.m. ET, the stock was trading down by 1.5% after having touched a new 52-week low of about $187 per share.
The catalyst for Tuesday's decline may have been a new vehicle recall. According to the National Highway Traffic Safety Administration, the recall involves just over 40,000 2017-2021 Model S and Model X electric vehicles (EVs). The issue is the potential for the EVs to lose power-steering assistance under certain road conditions such as bumps and potholes. Tesla began to send out over-the-air software updates on Oct. 11 to recalibrate the vehicles' systems. But after receiving alerts related to the calibration values, Tesla decided to voluntarily recall the affected vehicles.
Image source: Tesla.
Source Fool.com
