Tesla Motors (TSLA) and CEO Elon Musk just had a busy 24 hours, with critical upgrades, integration and litigation that are key to the electric vehicle maker's success.
Tesla shares were muted. They rose 0.6% to 206.43 on Thursday, and rose another 0.5%, to 207.45, on the stock market today. The stock is still below its 200-day and 50-day moving averages.
Autopilot
Tesla overnight Wednesday carried out a planned over-the-air software upgrade to its Autopilot software. The new driver-assistance software emphasizes radar over cameras. It also will require to keep their hands on the wheel. Tesla has come under criticism over Autopilot after the death of the driver of a Model S running on Autopilot. Federal regulators are still probing that incident.
Tesla and driver-assistance systems maker Mobileye (MBLY) agreed to part ways in July, but the two companies have reignited their war of words this month. Mobileye has accused Tesla of being reckless in the use and marketing of Autopilot. Tesla has said Mobileye's systems weren't up to snuff.
The Transportation Department this week announced autonomous driving regulation guidelines for Tesla, Alphabet (GOOGL) and other auto and tech players. The DOT specifically stressed its power to recall semiautonomous systems such as Autopilot.
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IBD'S TAKE: Tesla and Mobileye are far from buy points. But Nvidia is in buy range from a flat base with a pivot point of 63.60. Read about Nvidia, Alphabet and other top stocks in flat bases.
SolarCity Integration
CEO Musk today touted an Oct. 28 event that would showcase a SolarCity (SCTY) solar roof integrated with Powerwall batteries and Tesla charger. He's eager to show the benefits of a Tesla-SolarCity merger. Some analysts say the current alliance already has most of the upside, while a merger would add to Tesla's liquidity woes and distract top executives from completing the battery Gigafactory and getting the Model 3 out the door in heavy volume.
Aiming for Oct 28 unveil in SF Bay Area of new Tesla/SolarCity solar roof with integrated Powerwall 2.0 battery and Tesla charger.
— Elon Musk (@elonmusk) September 22, 2016
SolarCity shares have outpaced Tesla's stock this week -- up 9.9% vs. Tesla's 1% -- but are still trading at a significant discount to the deal's price, suggesting investors aren't sure the merger will take place.
On Friday morning, Tesla hired Eric Branderiz as chief operating officer. He previously held a similar position at SunPower (SPWR).
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Direct-Selling Litigation
Tesla also filed a federal lawsuit over Michigan's ban on selling cars directly. The luxury electric car maker has fought similar bans at the state level. But a federal decision could have national implications and could upend how cars and trucks have been sold for a century. With Tesla seeking to sell 500,000 vehicles by 2018, it wants to eliminate barriers from car dealerships and legacy automakers such as General Motors (GM) and Ford Motor (F).
Tesla also has been unable to sell directly in Texas and Utah without full-fledged dealerships.
