NEW YORK (TheStreet) -- Tesla Motors (TSLA - Get Report) tumbles after new worries arise regarding the way the electric car maker accounts for its business. NXP Semiconductors (NXPI - Get Report) and Freescale Semiconductor (FSL) soar on merger announcement. BlackBerry (BBRY) jumps after signing Sprint (S - Get Report) agreement.
Tesla fell 3% to close at $197.32.
The electric car maker took a hit after analysts at Barclays identified three areas of concern in the company's latest regulatory filing with the Securities and Exchange Commission, notes a MarketWatch report.
One area of concern is Tesla is building cars beyond just those that are ordered and will have "a smaller portion of vehicles available for immediate sale." This can be a problem for the car maker if it begins to sit on an unsold inventory of vehicles.
Another area of worry is the company's $107 million in capital expenditures to date on building its massive "gigafactory" for producing its cars' batteries. Where the worry comes in is Telsa's bottom line has yet to feel the effects of more capital expenditures as it gears up to rollout its mass-marketed vehicle, the Model 3.
Lastly, Telsa previously characterized its customer deposits as a deposit to hold a vehicle. Now, customer deposits will also include prepayments.
NXP Semiconductors soared 17.3% to close at $99.56, while Freescale Semiconductor jumped 11.8% to end the day at $40.36.
The chip companies got a boost after NXP announced it would acquire Freescale in a deal worth $17 billion including its former rival's debt. The semiconductor market is going through another round of consolidation as it matures, which also helped push shares of ON Semiconductor (ONNN) higher by 3.2% to close at $13.16.
Under the NXP and Freescale deal, the combined company will create the largest maker of "general purpose" microcontroller chips, as well as the largest chip company to serve the auto industry, notes a Barron's report.
BlackBerry climbed 2.2% to end the session at $11.05.
The smartphone maker got a boost after striking a deal with Sprint, in which the telecommunications carrier will offer BlackBerry's BES12 enterprise mobility management offering to corporate customers. BES12 is designed to allow companies to manage their employees' smartphones in a secure fashion, regardless of whether it is a BlackBerry, iPhone, Android or Windows phone used.
The Sprint agreement is the latest win for BlackBerry's BES12. BlackBerry has also landed BES12 agreements with Vodafone in India and EE in the United Kingdom, according to CrackBerry.com.