Tesla Stock Down As It Delays FSD Software Update

Tesla (TSLA) plans to roll out yet another update of what it calls its full self-driving software a week from Friday — a week later than planned — and it could take weeks, if not months, for many Tesla drivers to try it out. Tesla stock fell, but is still in buy range.


CEO Elon Musk tweeted late Monday that access to version 10.2 will be available to about 1,000 owners a day, “prioritized by safety rating.”

The way Tesla tracks driving safety has been the topic of controversy on social media over the last couple of days. Some drivers have commented that unsafe driving actually boosted their score. But braking suddenly to avoid running a yellow light lowered their score.

Others criticized the company for having the scoring scheme at all, given they’d either already paid $10,000 to have FSD installed when they bought the car or are paying a $199-a-month subscription.

Furthermore, Vice reported that Beta FSD testers are required to sign nondisclosure agreements in order to be part of the Early Access Program.

The report confirmed with multiple beta testers that EAP members are prohibited “from speaking to the media or giving test rides to the media.”

It also says they should be wary because they say a lot of people want Tesla to fail.

“Don’t let them mischaracterize your feedback and media posts,” the document reportedly says.

Tesla Stock

Shares fell 1.7% to 777.56 on the stock market today. Tesla stock is in buy range to 802.78 from a buy point of 764.55 from a cup-with-handle base.

Its relative strength line is trending up, according to MarketSmith. Tesla’s RS Rating is 87 out of a possible 99, while its EPS Rating is 72. Tesla is a Leaderboard stock.

Among U.S. based automakers with a growing slate of EVs, General Motors (GM) was down 0.6% and Ford (F) was up 1.2%. Recent IPO Lucid Motors (LCID) dropped 5.2%.

China-based rivals Nio (NIO) lost 4.6%, Xpeng (XPEV) fell 4% and Li Auto (LI) was down 2.9%.

In Broad Sell-Off, Growth Stocks Face Worst Week Since Coronavirus Crash

Tesla Probed

Tesla has been under fire recently for its safety record related to its Autopilot feature, as well as its use of the term “full self driving.”

The National Highway Transportation Administration is probing 12 crashes since 2018 in which Teslas slammed into one or more cars when first responders were on the scene.

Meanwhile, new National Transportation Safety Board head Jennifer Homendy called Tesla’s use of the term FSD “misleading and irresponsible.” She called on the company to stop the software rollout until it’s known to be safer.

Tesla’s self-driving software is considered Level 2. Systems that don’t require driver assistance start at Level 4.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.


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