Tesla slides back below $300 as its production problems continue
- Tesla has finally reached its goal of producing 5,000 Model 3 sedans per week.
- However, the stock slid back below the $300 level it has struggled with all year as its production problems continue to wreak havoc.
- Follow Tesla's stock price in real-time here.
Shares of Tesla sank more than 4% in trading Thursday, sending the stock once again below the $300 threshold that it has flirted with since the beginning of the year.
The slump comes as a third safety investigation by California regulators was disclosed by the car blog Jalopnik on Thursday, which said the latest confidential inspection was opened on June 19. It's not clear what exactly the new complaint entails, but the other two open investigations stem from a report by Reveal, an investigative journalism site, which alleged in April that Tesla knowingly left injury reports off its books.
Earlier this week, Tesla reached its goal of producing 5,000 Model 3 sedans in a week, a rate it has struggled to reach over the course of several months. Still, shares fell after reaching the milestone as Tesla reported total vehicle deliveries came in under what Wall Street had expected.
On Tuesday, Business Insider reported CEO Elon Musk had personally directed Tesla engineers to stop a critical brake test on Model 3's as it ramped up production to meet the end of June goal. While safety experts warn there could be serious quality issues with foregoing the brake-and-roll test, as the specific check is known, Tesla called the story false and said other rigorous testing still takes place.
Wall Street analysts, who have an average price target of $317 for the stock, have expressed concern that Tesla's current rate of production - achieved thanks to a temporary assembly line built in a tent next to its main Fremont, California factory - may not be sustainable.
Tesla is down 6.5% since January 1.