Tesla Motors, an American based electric vehicle company, has been growing in popularity and market shares since the first quarter of 2013. It was not only the first car company to develop an appealing yet environmentally friendly car, but it was also the first to aim at making the prices of electric cars to be cheaper, thus more affordable for the general public.
Yet on October 1st, the Model S ,one of Tesla’s cars, was caught on fire due to a collusion with a large metal object in the middle of the road, causing significant damage to the vehicle. This caused Tesla’s stocks to fall 6.2% only within a day. The Chief Executive of Tesla, however, states “For consumers concerned about fire risk, there should be absolutely zero doubt that it is safer to power a car with a battery.” And despite of this accident, most people still believe it is a highly uncommon occurrence, such that the Jefferies analyst, Elaine Kwei, states in her report, “The company’s track record of innovation and groundbreaking products gives us confidence in the execution of future vehicles,” and that she believes “the Model S is still considered safer than conventional vehicles.”
Works Cited:
http://www.businessinsider.com/jefferies-raises-tesla-price-target-2013-10#ixzz2h6nyWm4v
http://www.businessinsider.com/tesla-is-tanking-2013-10
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