Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

The NHTSA's Approach with Tesla 'Isn't Sustainable' - GLJ Research

Published 2022-08-16, 02:36 p/m
Updated 2022-08-16, 02:36 p/m
© Reuters.

© Reuters.

By Sam Boughedda

A GLJ Research analyst reiterated a Sell rating and $73 price target on Tesla (NASDAQ:TSLA) in a note Tuesday.

The staunch Tesla bear said in the research note that documents from a Freedom of Information Act request show "gross negligence" and "incompetence" at the NHTSA, and its approach with Tesla isn't sustainable.

"38 of NHTSA's 47 Advanced Driver Assistance Systems ('ADAS') crash investigations involve TSLA, without any subsequent actions against the company (despite credible allegations of 12 verified, and 18 separate claimed, U.S. deaths tied to the use of TSLA's ADAS systems)," said the analyst.

He added that four U.S. Congressmen, including Edward Markey, Richard Blumenthal, Gary Peters, and Jan Schakowsky, are now asking tough questions about the safety of TSLA's FSD vaporware technology.

Furthermore, the analyst argued: "The Head of NHTSA abruptly announcing his departure from the organization, last week, to return to the California Air Resources Board ('CARB'), an agency that provided TSLA with hundreds of millions in California taxpayer money for a promise it never delivered on (i.e., battery swaps), we now see elevated regulatory risk associated with TSLA that we did not see before."

Tesla shares are up 0.5% Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.