Tesla Inc (NASDAQ:TSLA) shares are trading down in pre-market on Thursday thus continuing the current week’s trend of losing streak. The stock has lost 9.55 percent in the first two days of trading in the current week. Investors’ reaction came on the back of sequential drop in deliveries in the second quarter and doubts raised on the safety of vehicles following a crash test report.
Though Tesla cheered investors by announcing the Model 3 production during the last weekend, investors’ looked at the news as a possible factor to limit the negative sentiments on delivery numbers. For the second quarter, the electric vehicle maker could ship about 22,000 vehicles. This is about 12 percent lower than the first quarter deliveries of more than 25,000 vehicles.
The second quarter numbers meant that Tesla could achieve its lower end of delivering 47,000 – 50,000 vehicles in the first half of the current year. The latest quarterly deliveries fell short of analysts’ expectations too.
Aside from this, CNBC reported that Insurance Institute for Highway Safety has conducted a fresh set of cash tests. The institute questioned the company’s claim on the safety of Model S in the history. The report said that there are better options compared to the Model S if consumers give a priority to top-line safety.
The Insurance Institute has given Tesla’s Model S only an “acceptable” rating, which is a notch lower than the “Good” rating. The agency cited that the vehicle slammed into the steering wheel. Also, the driver’s side belt failed to have sufficient tension to protect the crash test. Though the electric vehicle maker indicated that the company corrected it, the agency met with the same result only.
Both the unfavorable news brought Tesla shares under the grip of bears. At time of writing this, the stock dropped 2.49 percent. This meant that the stock is down about 11.8 percent for the current week.