Tesla Stock Is Falling. Odometers, Low-Price Cars, and Earnings Loom Over Shares
Proving a negative claim can be, well, impossible.Stories late last week cited a lawsuit alleging Tesla speed up its odometers to avoid warranty claims. It's hard to say Tesla didn't do it. It's unlikely, but facts will eventually come out.The question for investors is whether it will become a stock-level event. It almost certainly won't. Nervous investors can follow the issue, but they should worry more about earnings due Tuesday.Tesla stock was down 3.5% in early trading on Monday at $232.88, while the S&P 500 and Dow Jones Industrial Average futures were down 1% and 0.9%, respectively.Earlier in April, Nyree Hinton filed suit against Tesla alleging the company manipulated the odometer to avoid warranty claims, saying the odometer ran too fast, adding mileage. Tesla didn't respond to a request for comment. CEO Elon Musk responded to a tweet over the weekend calling the issue "idiotic."