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Tesla stock tanks after safety test

Thursday, July 06, 2017 - 01:10

Tesla's shares fell for the third straight day on Thursday, after its Model S sedan failed to get the top score in a test conducted by the Insurance Institute for Highway Safety. Roselle Chen reports.

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Tesla's shares tanked on Thursday after its Model S sedan failed to get the top score in a frontal crash test. The test was conducted by the Insurance Institute for Highway Safety. It showed that Tesla's Model S seat belts wouldn't prevent the driver's head from striking the steering wheel through the airbag. The car got an "acceptable" rating, one notch down from an optimal "good" score. That's just like similar sedans, Chevrolet Impala and Ford Taurus. But Tesla always gets much more scrutiny than others, says Kelley Blue Book's Akshay Anand. (SOUNDBITE) AKSHAY ANAND, EXECUTIVE ANALYST, KELLEY BLUE BOOK (ENGLISH) SAYING: "I don't think this is something that is going to sales materially. I don't think this going to hurt Tesla's brand reputation materially, and the reason I say that is just becasue there has been, you know, decent tail before this of success stories with Tesla and safety." Tesla's Model S also got a "poor" evaluation from the IIHS assessing headlights, and a "marginal" score for the ease of use of child seat anchors. Tesla's stock was down on Monday and continued to drop on Wednesday on lower-than-expected delivery numbers of Model S and Model X SUVs in the in the first half of the year.

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Tesla stock tanks after safety test

Thursday, July 06, 2017 - 01:10