Photo: Tesla
Tesla CEO Elon Musk was asked why the company waited for over one month to reveal the first fatal accident involving one of its cars while driving on Autopilot.
The American automaker was accused of hiding the information so that it would not risk any drop in share value while running a bid to acquire SolarCity, a solar panel manufacturer.
Representatives of the company promptly replied, and they have informed interested parties that the federal authorities were briefed on the particulars of the collision nine days after the unfortunate event took place.
Those that asked Tesla and Elon Musk why the company did not disclose the accident believed the shares of the company would significantly drop in value, but the first trading day after the incident was revealed showed that this was not a concern.
As Automotive News noted, Tesla shares lost almost four percent in value after the company published its knowledge of the incident, but TSLA ended the first trading day after the announcement being up by two percent.
The four-percent fluctuation in stock prices for Tesla was not the only time when the value of the “TSLA” shares lost value this year. Other incidents that caused situations that affected Tesla’s market value involved the announcement that the company will not reach this year’s production target, as well as other production-related figures.
Tesla insists that it did not find necessary to disclose the details of the accident, as automakers do not reveal this kind of event to its shareholders. If this accident had involved a conventional vehicle, the automaker would not be asked anything if authorities discovered no manufacturing faults.
However, as some analysts pointed out, this incident is relevant because the car was using a proprietary technology developed by Tesla. People also had this expectation from the company as the automaker has used everyone to a different business model and a new level of openness.
Representatives of the company promptly replied, and they have informed interested parties that the federal authorities were briefed on the particulars of the collision nine days after the unfortunate event took place.
Those that asked Tesla and Elon Musk why the company did not disclose the accident believed the shares of the company would significantly drop in value, but the first trading day after the incident was revealed showed that this was not a concern.
As Automotive News noted, Tesla shares lost almost four percent in value after the company published its knowledge of the incident, but TSLA ended the first trading day after the announcement being up by two percent.
The four-percent fluctuation in stock prices for Tesla was not the only time when the value of the “TSLA” shares lost value this year. Other incidents that caused situations that affected Tesla’s market value involved the announcement that the company will not reach this year’s production target, as well as other production-related figures.
Tesla insists that it did not find necessary to disclose the details of the accident, as automakers do not reveal this kind of event to its shareholders. If this accident had involved a conventional vehicle, the automaker would not be asked anything if authorities discovered no manufacturing faults.
However, as some analysts pointed out, this incident is relevant because the car was using a proprietary technology developed by Tesla. People also had this expectation from the company as the automaker has used everyone to a different business model and a new level of openness.
Google News