Tesla, Uber Face Challenges as Investigations and Economic Uncertainty Loom

Tesla, a car manufacturer, is facing challenges on both fronts. The ongoing investigations by public prosecutors in the United States have resulted in a decline on Wall Street. The investigation focuses on whether Tesla misled consumers and shareholders regarding the capabilities of its self-driving cars. There have been numerous accidents involving Tesla’s Autopilot driver assistance system, resulting in fatalities. Investigators are looking into whether Tesla committed fraud by exaggerating the system’s capabilities.

Meanwhile, Tesla also faced a setback with its Shanghai factory, reporting fewer shipments in April. This news led to a drop in Tesla shares. Despite these challenges, the company is taking steps to improve sales by sending a top executive back to China. However, the overall mood on Wall Street remains cautious following a recent strong rebound. The Dow Jones index saw gains for the sixth consecutive day, while the S&P 500 closed flat and the Nasdaq lost some ground.

On the other hand, Uber experienced a significant decline in its stock value after a disappointing quarterly report. The taxi and delivery company reported losses in the past quarter, adding to the market volatility and uncertainty in response to various developments in the tech sector.