Tesla Faces Calls to Delay Robotaxi Launch. Why the Stock Has a Bigger Issue

Dow Jones06-19

Democratic lawmakers in Texas are calling for Tesla to delay its robotaxi launch. That's unlikely to move the dial -- but the stock could still slide when the market reopens on Friday.

Two state senators and five state representatives signed a letter addressed to Tesla's director of field quality Eddie Gates. They asked the company to delay its robotaxi launch until Sept. 1, when a new self-driving safety law is set to take effect in Texas.

Tesla's tentative plan is to begin robotaxi operations in Austin on Sunday, according to Elon Musk earlier this month. The lawmakers asked it to respond with "detailed information demonstrating that Tesla will be compliant with the new law" if it does choose to go ahead with the launch.

Investors shouldn't fret about the Texas Democrats' letter, given that the Republicans control the governorship, Senate and House in the Lone Star State.

But the stock could fall Friday for other reasons. Although U.S. markets were closed for Juneteenth on Thursday, Tesla's German-listed shares were down 1.2% in early trading as investors fretted that the Iran-Israel conflict could escalate. They were also reacting to the latest Federal Reserve policy decision, where Chair Jerome Powell said that the economic outlook remains uncertain.

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Comments

  • JediGingerNinja
    06-20
    JediGingerNinja
    The only people wanting delays are clearly not investors in tesla. No doubt waymo investors on the verge of seeing thier investment portfolio and egos dive off a cliff. Ahhhh [OMG]  [LOL]  [LOL]  
  • Guavaxf30
    06-19
    Guavaxf30
    Well we known how unpopular Elon Musk have made Tesla so it should surprise to tead negative news coming from Germany.  But with the stock market, we are talking about cold, heartless players. They will not sell just because they don't like the man. But they will sell if they think the stock is going to fall.  So it may very well be true that the market is expecting the coming Robotaxi event to bring about a fresh wave of selling of the stock.
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