Tesla ( (TSLA) ) has fallen by -7.05%. Read on to learn why.
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Tesla’s stock has experienced a notable decline of 7.05% over the past week, largely driven by a series of challenges and setbacks. A significant factor contributing to this downward trend is a recent court ruling in Miami, where Tesla was found partially responsible for a 2019 crash involving its Autopilot system. The jury ordered Tesla to pay $242.5 million in damages, which has raised concerns about the safety and reliability of Tesla’s autonomous driving technology.
In addition to legal troubles, Tesla is facing headwinds in the European market. Despite some positive sales growth in Spain and Norway, Tesla’s sales have been declining in other parts of Europe, such as France, Denmark, and Sweden. This decline is attributed to increased competition, anti-Musk sentiment, and challenges with Tesla’s product lineup and production. The discontinuation of Model S and Model X orders in Europe further adds to the uncertainty surrounding Tesla’s market position.
Tesla’s recent entry into the ride-hailing market in San Francisco, while a strategic move, has not been enough to offset these challenges. The service, which still relies on human drivers, falls short of the fully autonomous robotaxi vision promised by CEO Elon Musk. As Tesla navigates these obstacles, the stock’s future performance remains uncertain, with analysts maintaining a Hold consensus rating and a modest price target.