Tesla’s TSLA shares dropped over 5% following the initiation of a special investigation by U.S. safety regulators into a fatal accident involving a Model 3 in Texas. The incident, which occurred yesterday, resulted in the death of a 76-year-old woman, with the driver claiming that Tesla’s partially automated driving system was in use at the time. CEO Elon Musk has contested the notion that the Full Self-Driving (FSD) feature was to blame, emphasizing that the system is intended for cautious operation.
The investigation comes during a critical period for Tesla, as the company pivots its investment strategy around autonomous driving and robotaxis. Despite this scrutiny, Tesla’s energy business is flourishing; the company has secured a multiyear agreement with NatPower for the deployment of 25 GWh of battery storage across Italy and the U.K., projected to be valued between $4 billion and $5 billion. Additionally, Tesla’s second-quarter deliveries are expected to rise to approximately 397,500 vehicles, aided by a resurgence in international demand, especially in China and Europe.
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