The ground breaking design of the Tesla Model S, made headlines when it was release. The anticipation for the vehicle was so high, that some customers were willing to wait for the vehicle for up to 2 years until they could receive it. However, after all that wait time, Tesla (TSLA) may have to recall the Model S.
Tesla CEO, Elon Musk, introducing the new Model S
Two weeks ago, a fire erupted in a Model S, as it was being driven on the highway, after the car struck a trailer hitch. This incident however, is not an isolated one. More than one month ago, another Tesla caught on fire in Mexico. After that first incident the shares of Tesla are down more than 25%.
Elon Musk, the co-founder of the company categorically stated that “there’s definitely not going to be a recall” [1]
Are the consumers safe in a Tesla?
According to the National Highway Traffic Safety Administration, the car received a 5 Star rating on all of the crash tests performed. However some, the test were not designed for electric cars and they do not test the strength of the battery shield. Considering the latest events and the growing popularity of electric cars, a new set of tests should be created specifically designed for electric vehicles.
Source 3: http://business.financialpost.com/2013/11/13/telsa-motors-inc-recall-decision-musk/