After a series of Tesla model s cars caught on fire, Tesla faces the possibility of having the model s recalled. This resulted in a 29% drop in stock prices for Tesla Moters. The threat of having a car recalled is a huge deal to car manufacturers. When consumers are looking to purchase a new car, they are aware of the dangers that come with it and expect a car that will keep them safe. In the past, companies like Toyota and Audi received awful press from incidents similar to this. Consumers take news like this very seriously.

However, the worst part about this mess is that Tesla Moters was one of the first companies to jump into the luxurious, but sustainable, car industry. They took a risk producing this car and it paid off. However, now that a couple of cars caught on fire, it is possible that the brand image of Tesla will be forever tainted. Hopefully a company who tries to innovate to benefit the world, while providing a competitive and high quality good, won’t suffer due to a news story that was blown out of proportion.

Main Article:

Plungis, Jeff. “Government Not Musk Will Have Final Word on Tesla Recall.”Bloomberg.com. Bloomberg, 13 Nov. 2013. Web. 17 Nov. 2013. <http://www.bloomberg.com/news/2013-11-13/government-not-musk-will-have-final-word-on-tesla-recall.html>.

Image:

http://www.motortrend.com/roadtests/sedans/1110_2012_tesla_model_s_first_ride/photo_01.html