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Yes, panic is slowly building in Tesla (TSLA) - Get Tesla Inc Report

It's pretty easy to see why: the high-flying stock is reacting harshly to negative news and ignoring comments that in the past would have sent it. Case in point: The next wave of negative news that followed Goldman's brutal sell call on Wednesday (and Tesla's weaker-than-planned production figures, wrongly dropped on July 3 evening).

TheModel S didn't get a top rating from the Insurance Institute for Highway Safety (IIHS), reports TheStreet's James Skinner. The IIHS cited issues with the small overlap front test, which is meant to simulate crashes into trees, poles and other vehicles, as a reason why the Model S did not receive the highest rating. IIHS Executive Vice President David Zuby said the front test remains a "hurdle" for some vehicles.

"Tesla made changes to the safety belt in vehicles built after January with the intent of reducing the dummy's forward movement," IIHS said. "However, when IIHS tested the modified Model S, the same problem occurred, and the rating didn't change."

As for the news investors are ignoring, top analyst Gene Munster is out very bullish on Tesla's future (again). 

Bottom line: you are dumb if you try to buy this pullback. The momentum has died, and Tesla will need to deliver a good set of numbers (of any kind) likely to reignite the bullishness. Until then, stand clear of this panic.

Tesla's shares fell 4.1% to $313.61 early Thursday afternoon.

Editor's Pick: This article was originally published on July 6, 2017. 

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