Tesla (NASDAQ:TSLA) has spent this week trending downward. While this has been primarily due to macroeconomic headwinds and broad market forces, the company has also seen some bad news. On top of the mass layoff lawsuit filed by multiple employees, Tesla is being accused of racial bias, including use of ethnic slurs. Lawsuits are nothing new for Tesla, but it is hard to ignore the fact that Elon Musk has not tweeted anything since June 21, over a week ago. In his silence, TSLA stock has fallen more than 10% for the week.
Early in the week, investors focused on Tesla’s second-quarter deliveries. While the electric vehicle (EV) leader is expected to post lower-than-expected statistics for the current quarter, TSLA stock bull Dan Ives has speculated that the numbers will likely be good enough for Wall Street. While that should have comforted TSLA investors, the stock’s performance hasn’t done much to reassure anyone that better days are ahead.
Let’s take a look at the week’s top stories for TSLA Stock Investors.
Top Headlines for TSLA Stock Investors
1. Tesla hit with new lawsuit alleging racial abuse against Black workers
According to Reuters, Tesla isn’t just facing one new lawsuit; it’s facing “at least 10 lawsuits alleging widespread race discrimination or sexual harassment.” One lawsuit is from a California-based civil rights agency. The accusers allege that managers and supervisors used racial slurs and made references to slavery while addressing employees of color on a regular basis. Tesla has issued no statements on the lawsuits so far. It maintains, however, that it has “always disciplined and terminated employees who engage in misconduct.”
2. Elon Musk Hasn’t Tweeted in Days. No One Knows Why.
Fans of Elon Musk’s Twitter (NYSE:TWTR) have likely been disappointed recently. The Tesla CEO is one of the platform’s most popular voices but he hasn’t posted in over a week. On June 21, Musk shared a photo of gas prices of $7.11 and a 7/11 station. Political scientist Ian Bremmer revealed the photo is from one year ago. Musk made no comment and has posted nothing since, leading investors to question if he is dealing with personal matters. As of now, no credible information has been provided.
3. Tesla’s run of record deliveries may be reaching the end of the road
Tesla started the year off with a roar when it reported record deliveries for Q4 2021. But as Reuters reports, its winning streak in that category is likely about to end. Data from market research platform Refinitiv indicates that “Analysts expect Tesla to report deliveries of 295,078 vehicles for the second quarter.” That would put Tesla well above the 240,000 to 245,000 mark that Ives set as being “good enough” for investors. As of this writing, delivery statistics still have not been reported.
4. Tesla files to expand Gigafactory Texas with giant new building
Tesla did have some good news to report this week. Electrek reports that it has “filed with the city of Austin to expand Gigafactory Texas with a giant new 500,000-square-foot building at the site.” Despite Musk classifying the Austin and Berlin factories “gigantic money furnaces,” he seems intent on expanding production. The outlet notes Tesla has ample room to expand on the property it owns near Austin, Texas, although few other details have been provided as to Tesla’s plans for it.
5. Elon Musk is smart — but he doesn’t understand ESG, tech CEO says
Bremmer isn’t the only one calling out Musk this week. Rebeca Minguela, the CEO of Clarity AI, recently spoke to CNBC’s Squawk Box Europe about environmental, social and governance (ESG). Specifically, she noted she feels Musk doesn’t understand it. In her words, “Many investors believe it might be only focused on climate impact … Not just ‘many investors’ — even Elon Musk tweeted about it.” Musk tweeted that ESG ratings are a “scam” after S&P 500 ESG Index removed TSLA stock.
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.