Tesla's Election Victory Doesn't Change Core Concerns (NASDAQ:TSLA)
Tesla's Big Win
Tesla Inc. (NASDAQ:TSLA) stock rose 4.1% to $222.70 per share in pre-market trading on Tuesday as investors cheered the company's victory in a key legal battle in Germany.
The court ruled that Tesla did not infringe on a patent held by Nextmove, a German company that develops technology for self-driving cars.
The patent in question relates to a system that allows cars to park themselves. Tesla's Autopilot system includes a similar feature.
Ongoing Lawsuits
The legal victory is a boost for Tesla, but it doesn't change the company's core concerns.
Tesla is still facing a number of lawsuits related to its Autopilot system.
In July, the National Highway Traffic Safety Administration (NHTSA) opened an investigation into the Autopilot system after a series of crashes.
The NHTSA is investigating whether the Autopilot system is defective and whether it poses a safety risk.
Autopilot Concerns
The Autopilot system has been involved in a number of fatal crashes.
In 2016, a Tesla driver was killed when his car crashed into a tractor-trailer while the Autopilot system was engaged.
In 2018, another Tesla driver was killed when his car crashed into a concrete barrier while the Autopilot system was engaged.
These crashes have raised concerns about the safety of the Autopilot system.
Tesla's Response
Tesla has defended the Autopilot system, saying that it is a safe and reliable technology.
The company has also said that it is working to improve the Autopilot system and make it even safer.
However, the NHTSA investigation is ongoing, and it is unclear whether the Autopilot system is safe.
Conclusion
Tesla's victory in the German patent case is a boost for the company, but it doesn't change the company's core concerns.
The company is still facing a number of lawsuits related to its Autopilot system, and the NHTSA is investigating the system's safety.
Until these concerns are resolved, investors should be cautious about investing in Tesla.
