Tesla is in the process of releasing its first-quarter performance results and address an accident. A fatal crash occurred last week and the Tesla Model X caught fire, which prompted a federal investigation into the occurrence.
According to Reuters, the U.S National Transportation Safety Board confirmed the inquiry into Tesla on Tuesday. In addition, as the news of the fatal crash was reported, the Tesla stock was in the mix of a big selloff.
The Tesla stock dropped 8.2 percent or $25 a share. It closed at $279.18 and was the lowest in nearly a year. The Tesla stock was not the only thing down in price. Per Moody Investors Service, Tesla was downgraded from a credit rating of B2 to B3.
Moody said the ratings "reflect the significant shortfall in the production rate of the company's Model 3 electric vehicle." It also "faces liquidity pressures due to its large negative free cash flow and the pending maturities of convertible bonds."
As the NTSB and the police investigated, questions stemmed from the accident. What is unclear if Tesla's automated control system performed most of the driving. The collision included two other vehicles. Tesla cars are equipped with an Autopilot feature that handles some of the driving tasks. The 38-year-old Tesla driver passed away in a hospital right after the crash.