While that will ultimately be good for the company, TSLA stock did not immediately react well. Why? Shortly thereafter, one of the leaders of Tesla’s artificial intelligence (AI) division announced he would exit the company. This comes at a time when Tesla is racing to fully automate all its electric vehicles (EVs), but it has experienced considerable setbacks.
Now Musk is preparing to settle his disputes with Twitter in court. It remains unclear how the legal battle will end, but Tesla is clearly facing other problems.
Let’s take a look at the week’s top TSLA stock stories investors should be reading.
Top Headlines for TSLA Stock Investors
1. Twitter Shares Sink 11% After Elon Musk Terminates $44 Billion Deal
Musk has confirmed that he plans on terminating his Twitter deal, but that doesn’t mean the battle is over. He’s currently facing a lawsuit from the social media company. While Musk claims he did not receive the information from Twitter that he needed regarding its bot count, the company disputes all such claims. The platform also maintains that Musk failed to attend some meetings with its executives. News of Musk’s new plans pushed down both TWTR and TSLA stock.
2. Tesla’s Head of AI, an Ardent Supporter of ‘Full Self Driving,’ Has Exited the Company
This week’s next biggest story has been the departure of Tesla’s senior director of artificial intelligence (AI). Andrej Karpathy confirmed his resignation via Twitter earlier this week. Musk commented on it, wishing him well and thanking him for his service to the company. But since then, Tesla has made no comments on who will replace Karpathy. His departure also raised some eyebrows as Tesla’s autopilot division has generated considerable controversy this year. In May 2022, Musk stated that all Tesla EVs would be fully autonomous by 2023. So far, though, the company’s quest to accomplish this has been set back by crashes and recalls.
3. Feds Probe Deadly Tesla Crash into Parked Tractor-Trailer at Rest Stop
Yet another Tesla crash has spurred a federal investigation. The National Highway Traffic Safety Administration (NHTSA) is looking into a July 6 collision in which a 2015 Tesla collided with a parked tractor trailer in Gainesville, Florida. CBS News reports that “it is not yet clear if the car’s driver-assistance Autopilot feature was operating at the time of the crash, which killed Mary Lou Seelandt, 66, and her husband, Karl Seelandt, 67, of Lompoc, California.”
4. How Sheetz Partnered With Tesla and Brought EV Charging to Rural America
On a more positive note, Tesla is working hard to expand its EV charging infrastructure. More specifically, it is trying to bring its Supercharging stations to rural areas. Recently, this has meant teaming up with prominent convenience store chain Sheetz. The chain has a reach that spans Maryland, North Carolina, Pennsylvania, Ohio, Virginia and West Virginia. Now, the company sees an opportunity as the EV boom continues and it has partnered with with Tesla to bring Superchargers to every state in which it has a presence.
5. EV Makers Are Gaining Ground on Tesla as Chinese Rivals Loom
Bank of America Merrill Lynch recently predicted that Tesla’s market share will plunge from “70% in 2021 to (an estimated) 11% by 2025.” While Forbes reports that “Tesla is expected to retain its pre-eminence by eventually producing smaller, cheaper EVs for the mass market,” it notes that Chinese EV rivals pose a significant threat to TSLA stock. One expert highlighted BYD (OTCMKTS:BYDDY) as having the power to overtake Tesla. As he notes, China’s EV producers will “bring important innovations to the market with electric cars and car software in the future.”
On the date of publication, Samuel O’Brient did not have (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.