NHTSA Probes 1.2M Teslas for Steering Loss; China Spin-Off Considered Amid $25B+ Capex
TSLA is trading near its 52-week low of $297.38 (4.0% above the low).
Summary
The NHTSA has opened a probe into 1.2 million Model 3 and Model Y vehicles over front suspension link failures causing steering loss—no crashes yet, but the scope is massive. Simultaneously, Tesla is weighing a separation of its China business, including the Shanghai plant, via spin-off, sale, or closure, aiming to firewall operations ahead of a potential SpaceX merger. China contributed ~17% of revenue, but local sales fell ~9% in H1 2026 amid fierce domestic competition. Capex guidance now exceeds $25 billion for 2026 and will keep rising, while the most recent week showed negative cash flow, adding liquidity pressure. On the positive side, Concord New Energy signed PPAs to supply ~1,200 GWh annually to Tesla, with first deliveries in H1 2027. This cluster of regulatory, strategic, and financial updates hits at a time when the stock is trading near its 52-week low, amplifying downside risk.
At the time of this announcement, TSLA was trading at $309.31 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $1.2T. The 52-week trading range was $297.38 to $498.83. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.