Why Tesla Stock Is Swerving Today
A day after Tesla (NASDAQ: TSLA) was hit with a massive vehicle recall related to its driver-assist software, investors are still trying to make sense of what the government's inquiry will mean for the business. There doesn't seem to be any clear consensus, with Tesla shares trading in a range of up 2% to down 2% on Friday morning.
A long-simmering government investigation into Tesla's Autopilot self-driving technology hit a boil Thursday when the National Highway Traffic Safety Administration (NHTSA) published a voluntary recall of more than 350,000 Tesla vehicles. The government said that Tesla's self-driving software package "may allow the vehicle to act unsafe around intersections" or exceed posted speed limits.
Tesla has an over-the-air software fix that it says will remedy the problem, though the NHTSA will continue to monitor and is continuing its broader probe into Autopilot. The potential fix, and the ongoing uncertainty, are making it difficult for some investors to judge how serious an issue the recall is.
Source Fool.com
