Germany’s Federal Motor Transport Authority KBA is investigating Tesla, Inc.’s (NASDAQ: TSLA) Autopilot feature for European approval, HT Auto reported citing German newspaper Bild am Sonntag.
The regulator is checking whether the EV maker’s automated lane-change function has approval for use in Europe. It is checking with the Dutch vehicle agency, which approves Tesla cars in the continent.
Meanwhile, Tesla could face a fine in South Korea for exaggerating battery specifications, a report published by Reuters said.
A report by the Korea Fair Trade Commission (KFTC) said that the company has violated the Fair Labeling and Advertising Act by exaggerating the mileage of a few of its models, including Model 3.
The U.S. automaker’s website reads, “Model 3 can travel 528 km (328 miles) on a single charge.” However, the commission said that the car’s range will drop if the temperature is less than zero degrees Celsius.
A KFTC official said, “We plan to hold a general meeting to review and determine the extent to which the automaker has violated the law and decide the level of sanctions.”
Wall Street’s Take
Last week, Morgan Stanley (NYSE: MS) analyst Adam Jonas reiterated a Buy rating on the stock with a $1,300 price target (51.7% upside potential).
Jonas said, “While we remain extremely bullish on the transformative impact of robotaxis (on-road, in air and underground!) we think you’ll need closer to two decades than one decade to see the inflection.”
Additionally, Toni Sacconaghi of Bernstein maintained a Sell rating on Tesla with a price target of $300 (65% downside potential).
Sacconaghi believes it will take longer than expected for the company to launch self-driving cars.
Overall, the stock has a Moderate Buy consensus rating based on 17 Buys, 7 Holds and 5 Sells. The average TSLA price target of $1,127.50 implies 31.6% upside potential. Shares have gained 32% over the past six months.
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According to the tool, compared to the previous year, Tesla’s website traffic has registered a nearly 36.6% decline in global visits year-to-date.
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