This was not a good week for Tesla Motors Inc (NASDAQ:TSLA). The stock price dropped 4.27 percent from the close of trading Thursday, July 3, to the close of trading a week later, July 10. While the major stock market indexes were all down for the week, none fell as far as TSLA. The Dow fell 0.9 percent, Nasdaq fell 2.0 percent, and the S&P 500 fell 1.05 percent for the same time period.
Model S Sales Fall in Norway
Reports published earlier last week of declining sales of Tesla’s Model S car in Norway set off the drop in the TSLA share price. Norway is a major market for Tesla in Europe. However, although the sales in Norway in June were down significantly from the record high number of sales in March, Tesla actually sold more cars in Norway in June than it had in May, so investors may have overreacted to the news.
Stolen Tesla Car Crashes and Starts Fire
TSLA share prices fell further last week on news of a fiery crash involving a stolen Tesla Model S in Los Angeles. During the wee hours of the morning on the fourth of July, cops followed the car thief on a high-speed chase that reached 100 mph.
The thief hit several other cars, then slammed into a lamp post. The high-speed impact caused the car to split in two, and the battery packs caught on fire. Eight people were injured, and several days after the crash, the driver died. This is the first time that anyone has died as a result of a Model S crash.
Trademark Troll Sues Tesla in China
A Chinese businessman sued Tesla for trademark infringement. He is asking for $3.9 million in damages and wants Tesla to shut down all its business activities in China.
This type of lawsuit by so-called “trademark trolls” is widely seen as a scam, where the trolls manage to register trademarks in China for the names of existing U.S. and European companies and then file suits against the companies.