Al Root
A Tesla Cybertruck exploded in Las Vegas early on New Year's Day, killing the driver and injuring several others.
Investors should have some context about the event heading into Thursday trading.
The explosion happened a little before 9 a.m. local time on Wednesday after a Cybertruck parked in front of the Trump International Hotel in Las Vegas.
"We have now confirmed that the explosion was caused by very large fireworks and/or a bomb carried in the bed of the rented Cybertruck and is unrelated to the vehicle itself," tweeted Tesla CEO Elon Musk on Wednesday evening. "All vehicle telemetry was positive at the time of the explosion."
Tesla vehicles are connected to a network, allowing the company to check vehicle parameters. Tesla connectivity also lets Tesla regularly send software updates to its vehicles to improve performance and add features.
A truck drove into a crowd in New Orleans early on New Year's Day killing at least 15. The FBI called it a terrorist attack. As of Wednesday evening, no one has made a definitive connection to both events.
"We're also very well aware of what has happened in New Orleans," said Las Vegas Sheriff Kevin McMahill in a news briefing. "So as you can imagine, with an explosion here on our iconic Las Vegas Boulevard, we are taking all of the precautions that we need to take to keep our community safe."
Investors will have to wait to see how Tesla stock reacts to the explosion. Shares closed out 2024 with four consecutive declines. Still, Tesla stock, at $403.84, gained 63% in 2024 and rose 61% since the Nov. 5 presidential election.
Musk strongly supported President-elect Donald Trump's candidacy and will co-lead Trump's newly created Department of Government Efficiency with Vivek Ramaswamy.
Wall Street expects a second Trump term to benefit Tesla. Help could come in the form of lower corporate tax rates or lower regulations. Tesla plans to launch a self-driving robotaxi service this year and Federal standards regulating self-driving cars could make that process easier.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 02, 2025 03:41 ET (08:41 GMT)
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