Tesla (TSLA) Stock Lower, Told Regulators About Crash 9 Days Later

NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) are down 0.55% to $212.81 midday Wednesday as the company alerted regulators to a fatality involving one its electric cars in partial self-driving "Autopilot" mode nine days after it crashed on May 7, Reuters reports.

The Palo Alto, CA-based electric car maker defended its decision not to announce the accident before a federal investigation was made public on June 30.

Tesla also knew about the deadly crash involving its Model S sedan before a $2 billion stock offering, Reuters noted.

The company raised at least $1.46 billion from investors on May 18 to 19 with a stock offering as the investigation into the crash was unfolding.

A spokeswoman told Reuters its own investigation was not complete at the time of the offering and it had not yet been informed by the government of its probe.

Yesterday, CEO Elon Musk tweeted about the timing of the disclosure, saying that the May accident "wasn't material."

Additionally, a Tesla Model X crashed and rolled over while in Autopilot mode last week, the Detroit Free Press reported earlier today. The man driving the vehicle and his passenger both survived.

Pacific Crest maintained its "sector weight" rating on Tesla stock, but lowered its fair-value estimate to $190 from $212.

"Checks indicate initial demand for Tesla's new, less-expensive car is strong, which would be dilutive to gross margin. We are lowering estimates to reflect this, previously reported Q2 deliveries and slightly lower unit volumes due to persistent production challenges," the firm wrote in a note received today.

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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