Tesla Shares Slide 3% on NHTSA FSD Probe, Closes $5B NatPower Battery Deal
TSLA•Tesla shares fell 3% after NHTSA launched a probe into a June 19 Texas crash that killed a homeowner and may involve its FSD system. Jefferies cut its price target to $375 over fears a SpaceX merger undermines FSD and Optimus valuations, as Tesla signed a 25GWh $5B NatPower deal.
1. Federal Probe and Crash Details
On June 19 a Tesla Model 3 veered into a residential home in Katy, Texas, resulting in the death of 76-year-old Martha Avila. The NHTSA has opened an investigation to determine whether the Full Self-Driving system was active, reviewing telematics data, while Tesla’s VP stated the accelerator remained pressed at 100% and the vehicle reached 73 mph.
2. Valuation Impact from SpaceX Merger Speculation
Tesla shares slid over 3% as Jefferies trimmed its price target to $375, warning that growing merger expectations with SpaceX could shift investor focus away from core automotive operations. Analysts argue such a tie-up implies Elon Musk may not value FSD and Optimus at the trillion-dollar levels previously assumed.
3. NatPower Battery Storage Deal
Tesla and NatPower agreed on the first phase of a battery storage project valued at up to $5 billion, under which Tesla will deliver 25 GWh of capacity across sites in Italy and Britain. This partnership significantly expands Tesla’s European energy storage footprint and supports regional grid stabilization initiatives.
