1. U.S. senators urged investigation into Tesla's Full Self-Driving system issues. 2. Failures reported in detecting railroad crossings may affect TSLA's regulatory standing.
Investigations could lead to regulatory fines or restrictions, similar to past incidents impacting stock valuations, as seen with Uber’s self-driving car issues.
Regulatory investigations can severely affect investor confidence, likely impacting TSLA's market performance.
Regulatory scrutiny tends to produce immediate stock reactions, evident when news arises around safety concerns.