NEW YORK (Reuters) - Tesla Inc shares fell sharply again Wednesday, reeling from a credit downgrade by Moody's Investors Service, federal probes of a fatal crash and concerns about Model 3 production.
On Tuesday, Tesla tumbled 8.2 percent to its lowest close in almost a year after the U.S. National Transportation Safety Board opened an investigation into a fatal crash and vehicle fire in California on March 23.
On Wednesday, a second federal regulator, the National Highway Transportation Safety Administration (NHTSA), said it was sending a team to California to investigate the crash.
On Tuesday, Moody’s Investors Service downgraded Tesla’s credit rating to B3 from B2, citing "the significant shortfall in the production rate of the company’s Model 3 electric vehicle.” It also noted “liquidity pressures due to its large negative free cash flow and the pending maturities of convertible bonds.”
Tesla has $230 million in convertible bonds maturing in November 2018 and $920 million in March 2019.
Since the end of February, the median analyst price target for Tesla has dipped by $10 to $356, about 37 percent higher than Wednesday's price, according to Thomson Reuters data. Nomura Securities analyst Romit Shah has the highest Tesla price target, $500, or nearly double the current price. All the targets were set before the March 23 crash.
In last week’s accident in which the Tesla struck a highway median, it was unclear if the vehicle’s automated control system called Autopilot was driving, the NTSB and police said.
The 38-year-old driver of the Tesla died at a nearby hospital shortly after the crash.
Late Tuesday, Tesla said in a blog post it does "not yet know what happened in the moments leading up to the crash."