Tesla’s stock price took a hit on Wall Street due to the ongoing investigations by public prosecutors in the US. The investigation is focusing on whether Tesla misled consumers and shareholders about the capabilities of its self-driving cars. There have been several accidents involving Tesla’s Autopilot driver assistance system, resulting in fatalities. Investigators are looking into whether Tesla committed fraud by exaggerating the system’s capabilities.
In addition to this investigation, Tesla faced a setback with its Shanghai factory, reporting fewer shipments in April. This news led to a drop in Tesla shares. Despite these challenges, the overall mood on Wall Street remained cautious following a recent strong rebound. The Dow Jones index saw gains for the sixth consecutive day, while the S&P 500 closed flat and the Nasdaq lost some ground.
On the other hand, Uber experienced a significant decline in its stock value after a disappointing quarterly report. The taxi and delivery company reported losses in the past quarter. Overall, the market showed some volatility and uncertainty in response to various developments in the tech and automotive sectors.
Tesla is taking steps to improve sales by sending a top executive back to China. Despite these challenges, investors remain cautious about Tesla’s future prospects due to ongoing investigations into its self-driving car technology.
Meanwhile, Uber is facing pressure from regulators around the world as it tries to expand its business beyond ride-hailing services. The company has also been grappling with internal issues related to leadership changes and corporate culture.
Overall, both Tesla and Uber are facing significant challenges that could impact their long-term success on Wall Street. As investors continue to monitor these developments closely, they will likely remain cautious about investing in these companies until there is more clarity around their prospects for growth and profitability.
In conclusion, both companies experienced setbacks on Wall Street due to different reasons such as ongoing investigations into their self-driving car technology for Tesla or regulatory pressures for Uber as they try to expand their business beyond ride-hailing services or internal issues related to leadership changes or corporate culture for Uber. Despite these challenges both companies are taking steps to improve sales but investors remain cautious about their future prospects until there is more clarity around their prospects for growth and profitability.
