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Why Tesla Stock Dropped on Monday

What Happened

Shares of Tesla (NASDAQ: TSLA) were hit hard on Monday. As of 10:30 a.m. EDT, the stock was down 5.3%.

The growth stock's decline is likely due to two primary factors, including a car crash over the weekend involving a Tesla and a generally bearish day in the overall stock market -- particularly for growth stocks.

Image source: Getty Images.

So what

Two men died in a car crash involving a Tesla this weekend. There was no one in the driver's seat, according to Mark Herman, Harris County, Texas, Precinct 4 Constable. One person was believed to be in the front passenger's seat and the other was sitting in the back of the vehicle, Herman told The Wall Street Journal. The investigation of the car crash is not complete.

Tesla's driver-assist Autopilot, which reportedly may have been involved in the crash, is meant to be used with someone ready to take over the vehicle. Though the automaker intends to eventually release a full self-driving ability for its cars, it hasn't done so yet.

Also weighing on Tesla stock in Monday is a bearish day in the overall market. The Nasdaq Composite, for instance, is down almost 1% at the time of this writing.

Now what

Next week, investors will get insight into Tesla's recent business performance. The electric car maker reports earnings for its first quarter of 2021 after market close on Monday, April 26.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.


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