Tesla Probed for Safety, Sonos Wins Legal Battle in Premarket Activity

Premarket stocks on Monday, August 16th, saw mixed movement. Tesla fell 1.9% due to a safety probe into its Autopilot system, while Sonos surged 9% after winning a patent infringement case against Google. T-Mobile dipped 0.4% amid a massive data breach claim, and Honest Company declined 2% after a downgrade by Morgan Stanley. Hyatt Hotels remained stable after announcing a $2.7 billion acquisition, while Chipotle dropped 0.6% due to a downgrade by Raymond James. BHP Billiton fell 2.4% amid merger talks in the petroleum sector. Seagate gained 0.8% on an upgrade by UBS, and Coinbase and MicroStrategy benefited from rising cryptocurrency values.

Tesla Faces Safety Probe, Sonos Wins Patent Battle in Premarket Trading

August 16, 2023 - The premarket trading session on Monday, August 16th, witnessed notable fluctuations in the stock prices of several major companies.

Tesla Probes Driver Assistance System

Tesla (NASDAQ:TSLA) shares declined 1.9% after the National Highway Traffic Safety Administration (NHTSA) announced a formal safety investigation into the company's Autopilot driver assistance system. The probe comes following 11 identified crashes involving Tesla vehicles equipped with Autopilot since January 2018.

Sonos Prevails in Patent Dispute

Sonos (NASDAQ:SONO) stock surged by 9% following a favorable outcome in its legal battle with Alphabet's Google (NASDAQ:GOOGL). A U.S. trade judge determined that Google had infringed on five Sonos patents, marking a significant victory for the wireless audio company.

T-Mobile Data Breach Allegations

T-Mobile US (NASDAQ:TMUS) shares dipped 0.4% amidst claims of a potential data breach that could have affected more than 100 million users. The telecoms giant has not yet officially confirmed the incident.

Honest Company Downgraded

Honest Company (NASDAQ:HNST) stock fell 2% after Morgan Stanley downgraded its investment rating from "overweight" to "equal weight." The downgrade was attributed to disappointing second-quarter financial results, which led to a 28% drop in the stock's value on Friday.

Hyatt Acquires Apple Leisure Group

Hyatt Hotels (NYSE:H) shares edged down 0.1% following the announcement of its $2.7 billion acquisition of Apple Leisure Group, a resort company owned by private equity firms KKR and KSL Capital Partners.

Chipotle Downgraded

Raymond James downgraded Chipotle (NYSE:CMG) from "strong buy" to "overweight." The brokerage firm cited the Mexican food chain's strong performance, which has resulted in an inflated valuation. Chipotle shares declined 0.6%.

BHP Billiton Talks Merger

BHP Billiton (NYSE:BBL) ADRs lost 2.4% as the mining giant disclosed discussions regarding a potential merger of its petroleum business with Woodside Petroleum (OTC:WOPEY). The possibility of receiving Woodside shares as part of the deal disappointed shareholders who adhere to mandates against investing in fossil fuel companies.

Seagate Upgraded

UBS upgraded Seagate (NASDAQ:STX) from "neutral" to "buy," citing the potential for the technology company to emerge as a winner in the struggling semiconductor sector. Seagate shares gained 0.8%.

Cryptocurrency Surge Benefits Coinbase, MicroStrategy

Coinbase Global (NASDAQ:COIN) and MicroStrategy (NASDAQ:MSTR) shares rose 1.7% and 2.2%, respectively, benefiting from a recent increase in the value of digital currencies. Coinbase operates a cryptocurrency exchange, while MicroStrategy has made significant investments in Bitcoin.