Leveraged Tesla ETF Plunges Nearly 9% as Autonomous Taxi Probe Intensifies

Stock News14:31

Shares of Southern CSOP Leveraged Tesla (07766) tumbled nearly 9% on Tuesday, falling 8.79% to HK$79.48 with trading volume reaching HK$3.03 million.

The sharp decline follows last Friday's 5.92% drop in Tesla Motors (NASDAQ: TSLA) on Wall Street, which erased approximately US$88 billion from the company's market capitalization in a single trading session.

According to reports, the U.S. National Highway Traffic Safety Administration has initiated a review of nearly 1,000 Cybercab vehicles. The probe focuses on the processes and technical data Tesla used to determine that certain federal safety standards were not applicable to its autonomous taxi. This investigation could potentially impact the rollout timeline of Cybercab and limit the expansion of its operational areas.

Wells Fargo analyst Colin Langan noted that the unveiling event "did not meet investor expectations." Tesla neither disclosed specific figures nor provided a clear implementation timeline. With the stock having gained approximately 15% over the past 30 days, the absence of fresh catalysts could exert further downward pressure on the share price, he added.

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