Tesla was the worst performing stock in the Cheddar 50 Wednesday, falling more than 7 percent to its lowest level in more than a year.
Shares of the electric automaker were plagued by a downgrade by Moody’s, a crash investigation, and a backlogged production line.
“All those things combined with a skittish technology market...is really weighing on the shares,” explained Efraim Levy, and analyst at CFRA.
On Tuesday, the National Transportation Safety Board announced it is opening an investigation into a fatal car crash involving a Tesla in California last week.
The company hasn’t been able to provide many details about what happened and is still “unclear if automated control system was active at time of crash.” This would be Tesla’s second NTSB investigation in as many years.
Also on Tuesday, Moody’s downgraded Tesla’s credit rating because of a “significant shortfall in the production rate of the company’s Model 3 electric vehicle,” the agency said in a release. This delay may then force the company to seek out extra funding.
However, some experts and investors remain bullish on the carmaker’s long term outlook.
CFRA maintains its hold position on the shares.
“Ultimately, the direction that we’re going is more electrification,” said Levy.
“I would never bet against Elon Musk’s ability to raise capital,” said Frederic Lambert, Editor-in-chief of Electrek. “Historically, he’s been very consistent on that front.”
For the full interview, [click here](https://cheddar.com/videos/cfras-efraim-levy-explains-why-he-maintains-hold-opinion-on-tesla).
President Donald Trump wants his “big, beautiful” bill of tax breaks and spending cuts on his desk to be singed into law by Independence Day. And he’s pushing the slow-rolling Senate to make it happen sooner rather than later. Trump met with Senate Majority Leader John Thune at the White House early this week and has been dialing senators for one-on-one chats, using both the carrot and stick to encourage them to act. But it’s still a long road ahead for the bill. Senators want to make changes to protect Medicaid and to make sure some tax breaks become permanent. Elon Musk called the whole bill a "disgusting abomination.”
For Novak Djokovic, this is a relatively easy call. He thinks the French Open is making a mistake by eschewing the electronic line-calling used at most big tennis tournaments and instead remaining old school by letting line judges decide whether serves or other shots land in or out.
