Here’s Why Tesla (TSLA) Stock is Down Today

Tesla (TSLA) stock is lower in pre-market trading Thursday as it fired back at reports that questioned the timing of its disclosure of a crash involving one of its cars.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) - Get Report are declining 0.67% to $213 in pre-market trading Thursday as the company fired back at reports that questioned the timing of the electric car maker's disclosure of a fatality involving one of its vehicles.

In a blog post late yesterday, the Palo Alto, CA-based company called the accusations "fundamentally incorrect."

On Tuesday, Fortunepublished an article questioning whether Tesla should have made public details of the May crash involving its Autopilot feature before its secondary offering in June.

"Fortune mischaracterizes Tesla's SEC filing. Here is what Tesla's SEC filing actually says: 'We may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims.' This is just stating the obvious," the company said in the blog post.

Separately, regulators said they are collecting information about a Tesla Model X crash on July 1 in Pennsylvania, the Wall Street Journal reported.

Tesla said it has "no reason to believe Autopilot has anything to do with this accident" but has not been able to access certain data from the car.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: TSLA

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