Tesla’s ongoing investigation by public prosecutors in the US has caused a decline on Wall Street. The focus of the investigation is whether Tesla misled consumers and shareholders regarding the capabilities of its self-driving cars. There have been numerous accidents involving Tesla’s Autopilot driver assistance system, resulting in fatalities. Investigators are looking into whether Tesla committed fraud by exaggerating the system’s capabilities. The Securities and Exchange Commission (SEC) is also examining Tesla’s statements to shareholders about the driver assistance systems.
Despite this challenge, Tesla faced another setback with its Shanghai factory, reporting fewer shipments in April. This news led to a drop in Tesla shares. In response, the company is taking steps to improve sales by sending a top executive back to China. Despite these challenges, the overall mood on Wall Street remained cautious following a recent strong rebound. The Dow Jones index saw gains for the sixth consecutive day, while the S&P 500 closed flat and the Nasdaq lost some ground.
On the other hand, Uber experienced a significant decline in its stock value after a disappointing quarterly report. The taxi and delivery company reported losses in the past quarter. Overall, the market showed some volatility and uncertainty in response to various developments in the tech and automotive sectors.
