Tesla shares fell nearly 4% after a report that the company may be working on safety measures for its cars, which are often criticized for their high crash rates.
Tesla shares were down 4% at $19.65 on Wednesday afternoon.
Investors also raised concerns about the safety of its batteries and said Tesla could face a backlash for its use of lithium-ion batteries.
Tesla is also seeking to improve safety and efficiency for its vehicles.CEO Elon Musk has been vocal about safety measures, including a ban on using lithium- ion batteries in its Model S sedan.
But the company is not alone in making those changes.
Tesla has also been working on making more efficient batteries for the Model X SUV, which is expected to be unveiled later this year.
The company has been working with Panasonic on a new lithium-sulfur battery technology, which has been shown to be less toxic than traditional lithium-based batteries, the Wall Street Journal reported.
The Wall Street journos report that Tesla is working on a lithium-powered Model X. That’s interesting to me.
I think Tesla is looking to develop a better battery that is cleaner than what they have today, which I think is a really smart move.
The Journal also reported that Tesla’s battery research and development lab is in a research and testing facility in Nevada, according to Tesla spokesperson Jeff Jarvis.
Tesla also reportedly has a research center in Germany that is focused on developing a lithium battery.