Tesla Inc (NASDAQ: TSLA) stock lost as much as 5.6 percent in early trading hours on Tuesday after news of a fatal Autopilot accident but later pared most of its losses.
What Happened
The U.S. National Highway Traffic Safety Administration is investigating the death of a Tesla driver in Texas who was killed while using the Autopilot feature, Bloomberg reported on Tuesday.
According to witnesses, the Tesla car, a Model S, did not brake when it hit a tree, The Wall Street Journal reported. The driver, who has not been identified, was pronounced dead at the scene, the paper said.
Tesla shares were down 3.4 percent at $702.88 at last check.
Why It Matters
Investors are concerned that the Autopilot accident could lead to more scrutiny of the company's driver-assistance system and potentially hurt sales.
What's Next
Tesla is facing several lawsuits over accidents involving the Autopilot feature.
The company said in March that it would no longer provide quarterly guidance for vehicle deliveries, a move that analysts said signaled Tesla's confidence in its ability to meet production targets for its Model 3 sedan.
Tesla is scheduled to report first-quarter results on April 26.