Tesla Inc.’s stock posted its biggest drop in a month after a fiery fatal crash of a Model S car over the weekend added to a broader pessimism about electric vehicle stocks.
Shares of Elon Musk’s automaker fell as much as 6.5% in New York and came under renewed pressure at midday as the National Highway Transportation Safety Administration said it had launched a probe into the crash. While investigators are zeroing in on circumstances unique to the accident, industry watchers have been concerned that EV startups may soon lose their competitive edge, as mass-market rivals like Mercedes-Benz AG and Stellantis NV roll out their own models.
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