The first full week of February 2022 is winding to a close, and Tesla (NASDAQ:TSLA) has hit a difficult stretch of road. Tesla stock news has been popping up all over the place, but it hasn’t all been good. The electric vehicle (EV) innovator received a nod from President Joe Biden, but roadblocks are still appearing as well. Despite its strong start to the week, TSLA stock is likely to close in the red. It’s been falling steadily all morning and doesn’t show any signs of an afternoon rebound. As of this writing, shares are down 2.3% for the day, demonstrating the type of turbulent pattern that hints toward further declines.
Tesla bulls had hoped to see the week’s early growth help TSLA stock pull back into the green for the week. Unfortunately, that doesn’t seem likely. Shares are currently down for the past five days by more than 4% with declines for the month surpassing 17%.
Today isn’t a great day for EV stocks, though. Tesla’s American peers seem to be down across the board. Fisker (NYSE:FSR) has dropped after an early morning rally, and both Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN) have been falling all day.
While today’s declines are likely due to negative market momentum, Tesla has also seen its share of bad news this week. Let’s take a look at the latest Tesla stock news stories that made headlines this week.
Tesla Stock News: Top Headlines of the Week
Elon Musk Details SpaceX Plans to Go to Mars. Here’s How That Benefits Tesla.
With so much Elon Musk coverage surrounding Tesla, it’s good to be reminded that he’s still focused on space. Yesterday, the CEO provided an update on SpaceX, specifically on its Starship rocket and its booster. Investors can’t buy shares in SpaceX just yet, but every time Musk provides an update on his quest to conquer world’s beyond earth, the world excitedly tunes in. This type of buzz generates considerable hype around Musk, exactly the type that can help provide a bump for TSLA stock. It’s essentially free advertising, even if Musk isn’t discussing his EV company.
Tesla Is The World’s Most Searched Car Brand, New Study Reveals.
Yesterday, we broke down why this is good news for TSLA stock. The article title sums up the study’s findings well. Specifically, it found that perspective EV shoppers’ first go-to move for finding a new car is to search for Tesla. Although it’s well-known that interest in EVs remains high, it’s always good to see data on which cars and brands are most desirable to consumers. This study demonstrates that Tesla has a clear competitive edge over its peers, including Ford (NYSE:F) and Toyota (NYSE:TM). General Motors (NYSE:GM) didn’t even make the list of top 20 most searched EV producers. Investors can take comfort in knowing that sales are likely to remain high throughout 2022.
Elon Musk Thanks Online Petition After President Biden Acknowledged Tesla as Largest EV Manufacturer.
As noted earlier, President Biden took the high road earlier this week and acknowledged Tesla as the EV sector’s leader. This only came after he had previously paid tribute to Ford and General Motors in a tweet that caught Musk’s attention. It also angered his legions of fans who began circulating a petition urging Biden to acknowledge Tesla. When Biden described Tesla as the largest EV producer in America, Musk thanked his fans and noted that the petition had made a difference. Anyone who questioned the power of Tesla’s fan base should have no further doubts. This type of digital strength can help elevate a stock if it can send a petition all the way to the White House.
Tesla recalling ‘Boombox’ feature that obscures pedestrian warning noise.
The trend of Tesla being forced to recall vehicles has continued into this week. Last week we saw the company face multiple recalls due to alleged problems with some models’ full self-driving (FSD) technology while others were recalled due to seatbelt malfunctions. Neither recall proved too significant, though, as TSLA stock stayed in the green while each story dominated headlines. This development is worth noting for investors mostly because it isn’t likely to affect share prices either. Problems with the pedestrian warning noises are similar to the seatbelt reminder deficiency, as they don’t actually affect the bar’s drivability. Therefore, it won’t matter to drivers.
‘Full Self-Driving’ clips show owners of Teslas fighting for control, and experts see deep flaws.
Tesla does seem to be experiencing more difficulty with its FSD technology, though, as this article proves. Last week we saw thousands of Teslas recalled due to a problem with its autopilot technology. More specifically, with the part of it that stops the car. The Washington Post reports that a panel of experts has reviewed driver videos and found flaws in Tesla’s FSD tech. This isn’t great for TSLA stock, as FSD is a core part of Musk’s vision for changing automotive transportation. That said, it also isn’t likely to push it down too much. This is a setback but not an obstacle the company can’t overcome.
Horrific allegations of racism prompt California lawsuit against Tesla.
We’ve seen the good and the bad of Tesla stock news, now we come to the ugly. Tesla’s Freemont, California, factory set production records in 2021. However, there have been recent accusations of racist language and behavior that have affected workers of color. Now, tensions have reached a boiling point as the Department of Fair Employment and Housing (DFEH) levies a lawsuit against the company and its leadership. Tesla responded with a post on the company blog, explaining how the lawsuit is misguided. While it hasn’t done much to stop the lawsuit, the consistent coverage of the legal battle also hasn’t forced TSLA stock down by too much. That said, this could be dragged on for the foreseeable future.
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.