Tesla Motors has recently been blossoming as a new competitor in the electric car/zero emission industry. As shown with the graph above, the stock experienced a large fluctuation in value in this last year, but has been suddenly decreasing in the last weeks. Why? The batteries of which the cars operate from have been catching fire. Three cases have been reported within the last six weeks, and this is causing many investors to lose faith in the growing company.
Obviously, with their cars catching fire, this is an enormous obstacle that Tesla must overcome. They should investigate each individual case to determine what the cause was, and then find an appropriate solution which can be modified on new cars sold, as well as being installed on already-sold cars. If the company is able to reduce these accidents that are occurring, the company should be able to regain its lost market value and increase at a rate of which it previously saw earlier in the year.
If Tesla can fix the batteries that are catching fire, I see the company growing substantially. Many people are becoming more conscious about the environment and will place a high price on something to reduce their emissions.
http://www.economist.com/blogs/schumpeter/2013/11/tesla-motors