Tesla Inc. (NASDAQ: TSLA) and CEO Elon Musk were the focus of several market headlines this week. The company announced significant changes to the manufacturing process for its Cybercab, which Musk described as a "first real revolution in automotive manufacturing in over a century." Following the vehicle's launch, Tesla revamped its production methods, resulting in speeds over five times faster than traditional practices.
Separately, Tesla’s Autopilot and Full Self-Driving systems are facing increased federal scrutiny. Following an NBC News report identifying 43 instances of drivers seemingly asleep at the wheel of moving Teslas, Representative Raja Krishnamoorthi (D-Ill.) called for federal action. The lawmaker questioned whether regulators are doing enough to prevent the misuse of these driver-assistance technologies.
Musk also addressed a fatal crash in New York City, refuting claims that Tesla’s technology was involved. He argued that the crash would not have occurred if Autopilot had been in use and accused media outlets of misleading the public regarding the crash details.
On the financial front, Goldman Sachs analysts estimated that Tesla could operate its Cybercab for up to 30 cents per mile less than rival autonomous vehicles if the company achieves its targeted production costs. This potential cost advantage was highlighted as a significant factor in the robotaxi market.
Investor Gene Munster predicted that Tesla shares could rally despite the National Highway Traffic Safety Administration’s (NHTSA) announcement to launch a probe into Tesla’s plans to deploy 1,000 units of the Cybercab in Austin. Meanwhile, investor Ross Gerber advised Tesla owners to let Tesla take the risk in the rollout of the Robotaxi service.
