Tesla Stock Rose After the Twitter Deal Overhang, but the DOJ Inquiry, China Lockdowns, and U.S. Recession Might Be Next

Tesla Stock

Tesla Stock (NASDAQ:TSLA)

The EV manufacturer Tesla (NASDAQ:TSLA) is back in the spotlight on Capitol Hill. The news of a criminal investigation against Tesla over autopilot claims was met with optimism by Senators Richard Blumenthal and Ed Markey of the United States Senate. In a joint statement, the senators reiterated their previous warnings about what they see as Tesla’s deceptive advertising methods. They say they have led consumers to overestimate the cars’ capabilities and put the public in danger.

Lawmakers said they would keep pushing for Tesla supervision to minimize driver confusion and fatal accidents. If wrongdoing is exposed, they will also seek justice by demanding responsibility.

It has been reported that federal prosecutors are looking into whether Tesla deceived customers, investors, and regulators about the effectiveness of its driver assistance technology as part of their current investigation into the electric car manufacturer.

Despite the widespread belief that Elon Musk’s close on the Twitter purchase has lifted a cloud over Tesla stock, the company is trading lower today. Stocks linked to China’s manufacturing and supply chains have been jolted by rumors of harsher COVID lockdowns. Amazon’s forecast update for the Christmas quarter has been seen as an early warning sign of a recession in the United States.

In Friday’s early trade, TSLA dropped by 3.29%. Compared to its 50-day, 100-day, and 200-day moving averages, TSLA is now trading at a discount of more than 10%.

Featured Image-  Pexels @ Makara Heng

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.