Tesla's stock drops amid ongoing DOJ investigation
The U.S. Department of Justice is investigating Tesla over the advertised range of its vehicles and personnel decisions.
TheStreet's J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Monday, October 23.
Full Video Transcript Below:
J.D. DURKIN: I’m J.D. Durkin - reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks were mixed to close out today’s session. The Dow closed down almost 200 points, the Nasdaq closed two tenths of a percent higher and the S&P closed fractionally lower.
This comes as investors look ahead to a banner week with tech earnings on deck. Both Microsoft and Google parent Alphabet will release results on Tuesday. These reports will be closely watched for insights into the broader performance of the tech sector. So far, around 17 percent of companies in the S&P 500 have reported earnings. Of those, 73 percent have beat Wall Street expectations.
Sticking with Wall Street - just days after releasing its third quarter earnings report, shares of Tesla are moving the wrong way. Earlier today, shares of the Elon Musk-led carmaker hit a four month low.
Adding to the growing list of concerns for Tesla investors Monday morning was a request by the Department of Justice to provide documents relating to a probe over Tesla’s driving range claims. Tesla said the DOJ has also requested documents related to its autopilot system, as well as "certain matters associated with personal benefits, related parties, vehicle range and personnel decisions.”
Last week, Tesla’s earnings report revealed the company missed on both earnings and revenue for the first time in more than four years. But, despite missing its deliveries mark in September, Elon Musk reiterated Tesla intends to hit its 2023 delivery target of 1.8 million vehicles. In order to accomplish that, Tesla will have to deliver 477,000 vehicles by the end of the year - almost 42,000 more than it achieved in the previous three months.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.
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