After a difficult month, Tesla is poised to finish May in the green. TSLA stock is up more than 10% this week, rising 6% today. This momentum is much needed, particularly after recent declines threw a wrench in CEO Elon Musk’s Twitter acquisition plans.
But recently, a much more serious story has come to light regarding Musk. Documents show that a SpaceX flight attendant was paid $250,000 to not sue over sexual misconduct.
These allegations aren’t just the top headline of the week — they may be the most important story involving the Tesla CEO to date. TSLA stock has risen since the news broke, but that doesn’t mean the story is something to ignore. Everyone should be concerned with these claims.
As more details continue to emerge, let’s take a look at some of the top Tesla news stories this week.
Top Headlines for TSLA Stock Investors
A SpaceX flight attendant said Elon Musk exposed himself and propositioned her for sex, documents show. The company paid $250,000 for her silence.
Business Insider reports that, in 2016, Musk allegedly exposed himself to a flight attendant on a company jet and touched her leg without consent. In 2018, SpaceX paid the employee a $250,000 settlement, which also included “restrictive non-disclosure and non-disparagement clauses” preventing her from discussing the allegations. When asked to comment, Musk requested more time to respond and called the story a “politically motivated hit piece.” The CEO did not follow up with the news outlet to issue further comment, despite claiming there was “a lot more” to the story.
Twitter shareholders sue Elon Musk and Twitter over chaotic deal
It’s no secret that Elon Musk’s quest to acquire Twitter has been problematic for TSLA stock. But it hasn’t been great for TWTR stock, either. The social media giant is back in the green today, but it has fallen 20% since Musk disclosed his stake. Now, investors are taking action against the Tesla CEO on grounds that his market manipulation pushed shares down. As they see it, Musk’s claims about Twitter’s bot userbase were part of a plan to either secure a better deal or wriggle out of the agreement entirely.
Tesla owners are 50% less likely to crash their EV than their other cars
Last week, a fatal crash in California cast a negative light on Tesla’s autopilot feature. The company’s full self-driving (FSD) tech has seen plenty of scrutiny over the years. However, this week brought better news. Per Electrek, data indicates that the odds of a Tesla driver getting into an on-road collision are not high. The outlet reports that “Tesla owners are about 50% less likely to crash their EV than any other vehicle they operate.” The study also included another interesting finding: Drivers are 21% less likely to “engage in distracted driving with their phone” behind the wheel of a Tesla.
Record 2021 Revenues Bump Tesla Up 35 Places On The Fortune 500 List
In more news, Tesla is advancing on one of the business world’s most important rankings. Specifically, the company’s 1 million vehicle deliveries and $50 billion in revenue have secured it a place on the Fortune 500 list. The electric vehicle (EV) innovator has been on the prestigious list for years, but it has now advanced 35 places to the 65th spot. While Tesla still lags behind competitors Ford (NYSE:F) and General Motors (NYSE:GM), the news does reflect its recent progress.
Volkswagen chief says German car giant will overtake Tesla on electric vehicle sales by 2025
One Tesla competitor not eligible for the Fortune 500 is German automaker Volkswagen (OTCMKTS:VWAGY). However, CEO Herbert Diess believes the company will overtake Tesla’s electric vehicle sales by 2025. Volkswagen is the largest auto producer in Europe. Diess thinks Tesla will have trouble ramping up production in the coming year. He sees this as the perfect opportunity for Volkswagen to close the EV sales gap as supply-chain issues subside.
Tesla submits application to expand German plant, report says
Just a few months after the opening of Gigafactory Berlin, Tesla already wants to expand. According to a local media outlet, the company has submitted an application to “build on a further 100 hectares east of its plant in Germany.” This matter will be discussed by “the municipality’s main committee” on June 2. If the committee comes to a conclusion, they will hand down a verdict on June 23. At full capacity, Tesla’s German facility can produce as much as 500,000 EVs per year.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
