Nasdaq 100: Tesla shares down amid vehicle recall

[MongiIG]

Adding more pressure to the embattled electric vehicle business, Tesla is recalling 300,000 Model 3 and Model Y cars due to a rear brake light issue.

 

 Jeremy Naylor | Writer, London | Publication date: Monday 21 November 2022

Tesla stock has opened down 1% all sessions on the IG platform this morning on news over the weekend that it is recalling more than 300,000 vehicles in the US because of rear tail light issues that have cropped up on these vehicles.

The Texas-based vehicle manufacturer said the recall affects some Model 3 and Model Y vehicles.

Tesla share price

Let's take a look at the share price, which, as I said, is down in today's session but is under a lot of pressure, down 58% from the record highs that we saw all the way back at the beginning of November 2021, when the stock was at $415.78.

Here we are now, languishing at $178. It trades all sessions on the IG platform and it gives you an indication as to how things could open when the main trade gets underway later on today. At the moment, down, as I said, just over 1%.

Meanwhile, analysts in the sector say Tesla could undertake its first ever share buyback within the next year. That would under most circumstances be positive. But there's a qualification to this, according to analysts, that this may all weigh on several factors, including the outcome of the pending lawsuit against chief executive, Elon Musk and Tesla over Musk's near $56 billion pay package, which consists of stock options that all has a material impact on whether or not the company is going to be able to buy back stock.

At the moment, at least, the stock is down 1% on the news over the weekend of this recall.