Tesla (TSLA) shares traded nearly flat in premarket trading on Wednesday, recovering slightly from a sharp 5.79% decline in the previous session. The drop followed news that U.S. auto safety regulators have opened an investigation into a fatal crash in Texas involving the company's driver-assistance technology. The stock closed Tuesday at $381.61 and was up 0.10% to $382.00 as of 9:04 a.m. EDT.
NHTSA Investigation Details
The National Highway Traffic Safety Administration (NHTSA) is probing a June 19 incident in Katy, Texas, where a Tesla Model 3 struck a house, resulting in the death of a 76-year-old woman. The Harris County Sheriff's Office reported that the driver claimed to have been using automated driving assistance at the time. However, Tesla's self-driving chief, Ashok Elluswamy, stated that the driver "manually overrode self-driving" and fully pressed the accelerator. CEO Elon Musk called the report "makes no sense" and noted that Full Self-Driving (FSD) "drives slowly through neighborhood streets."
European Regulatory Developments
In Europe, Finland's transport authority, Traficom, is reviewing Tesla's FSD system for potential approval, with an EU-wide ruling expected in October. The Netherlands granted temporary approval in April, and Estonia and Belgium have also allowed the system. Traficom is specifically examining handover speed, overtaking in poor visibility, and Tesla's speed-offset feature. Notably, Tesla's FSD software is not classified as fully autonomous in Europe, as it still requires a human driver to remain in control.
Strong European Registrations
Amid the regulatory headwinds, Tesla posted a 107.9% surge in new-car registrations in Europe for May, reaching 28,610 vehicles. This data, covering the EU, UK, and EFTA, provides a clearer signal of demand. Total registrations across the region rose 3.6% to 1,152,523. Competitors also saw gains: BYD registrations jumped 136.6%, and Leapmotor surged 465.1%. In contrast, traditional automakers like Renault, Stellantis, and Volkswagen saw declines of between 1% and 3%.
Major Battery Storage Deal
On the energy front, Tesla and NatPower announced a landmark agreement to deploy 25 gigawatt hours of battery storage across Italy and Britain. This initial phase could expand to a total investment of $5 billion. NatPower will utilize Tesla Megapack batteries and Tesla's power trading software to optimize grid operations. NatPower CEO Fabrizio Zago emphasized that the sector "still struggles to deliver infrastructure," but called the partnership a way to integrate "capital and execution."
Market Sentiment and Delivery Outlook
The Texas crash investigation could keep Tesla's stock under pressure, as safety and regulatory concerns may overshadow positive sales data and energy deals. A potential recall, stricter FSD limitations in Europe, or a miss on quarterly deliveries could test the narrative that software and robotaxis will drive Tesla's future growth, especially as Chinese EV makers expand in Europe.
Upcoming Delivery Estimates
Investors are now focused on Tesla's second-quarter delivery numbers. RBC Capital analyst Tom Narayan estimates deliveries of 405,000 vehicles, slightly above the Visible Alpha consensus of 401,000. UBS also projects 405,000, while Baird is more conservative at 392,900. Deliveries count vehicles actually delivered to customers, not just production figures.
