Tesla’s stock loses its way: Insurance company
TEL AVIV — Tesla Motors Inc. shares slipped Tuesday as a new analysis showed the carmaker may have lost the protection of a life insurance policy.
The company’s share price dropped 2.9% to $27.98 after The Associated Press reported Wednesday that a TSLA insurance company may have been behind the loss of coverage for some of the company’s workers.
Tesla said Tuesday the loss in policy payments “is consistent with an actuarial estimate that the company may be facing significant losses in the event of a catastrophic event.”
Tesla said its policyholders may not receive the payout.
TSLAs were not immediately available for comment.
Tesla’s share value fell $3.38, or 4%, to $30.23 after the AP report.
The stock had risen about 8% this year and was up 5% in 2018.
Tesla has struggled with a sluggish global market and weak consumer confidence.
In its most recent earnings call, Tesla CEO Elon Musk said the company was in the midst of a “challenging” year, with a “small amount of time remaining before our third quarter results are available.”
Tesla shares are down about 40% this century and have lost about 50% of their value since 2010.