Tesla Stock in Focus After Settling Autopilot Lawsuit: Key Levels to Watch
News Comes Days After Elon Musk Said That Self-Driving Robotaxi Will be Unveiled in August
Tesla Settles Lawsuit Over Autopilot Car Accident
Shares in electric vehicle (EV) maker Tesla (TSLA) are in the spotlight following the settlement of a wrongful death lawsuit related to a 2018 autopilot car accident that resulted in the death of Apple engineer Walter Huang. The accident occurred when Huang’s Model X SUV veered off a highway near San Francisco. The settlement comes just days before the trial was scheduled to begin, potentially sparing Tesla from damaging evidence and testimonies that could harm its reputation.
Huang’s family alleged that Tesla’s autopilot system was responsible for the accident, citing safety and design defects in the driver assistance technology. They also criticized Tesla’s promotional messaging, which they claimed suggested that vehicles with autopilot were safe to operate without the driver’s hands on the wheel. Tesla, on the other hand, argued that Huang had misused the autopilot system by being distracted and playing a video game before the crash.
The terms of the settlement were not disclosed at Tesla’s request, with the company’s attorneys arguing that revealing the amount could set a precedent for future cases and impact Tesla’s liability in similar lawsuits.
Elon Musk Announces Plans for Self-Driving Robotaxi
The settlement of the lawsuit comes shortly after Tesla CEO Elon Musk announced plans to unveil a self-driving robotaxi on August 8. Musk’s announcement caused Tesla shares to rise by 4.9% on Monday, indicating investor optimism about the company’s future prospects in the autonomous driving space.
Analysts believe that Tesla is keen to avoid a public trial that could highlight issues with its Full Self-Driving technology, which is still under development. The company’s focus on innovation and technological advancements has been a key driver of its stock performance in recent years.
Technical Analysis of Tesla Stock
Tesla shares have been trading within a descending channel since July last year, with occasional fluctuations above and below the pattern’s trendlines. Traders should monitor the $160 level for potential support during periods of weakness, while keeping an eye on the $213 region for resistance as the stock moves higher.
As of premarket trading on Tuesday, Tesla shares were down 0.5% at $172.14, reflecting a 30% decline since the beginning of the year. The stock’s performance is closely tied to investor sentiment around the company’s technological advancements and regulatory challenges in the EV space.
Conclusion
The settlement of the autopilot lawsuit and Elon Musk’s announcement of a self-driving robotaxi have put Tesla in the spotlight once again. Investors will be watching closely to see how these developments impact the company’s stock performance in the coming weeks. With key technical levels to watch and ongoing regulatory scrutiny, Tesla remains a stock to watch for both short-term traders and long-term investors.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above securities.
Read the original article on Investopedia.
