Rocky Trouble
RE: “Tesla Shares Drop After Fire”
Fellow classmate Vivian’s blog post on Tesla’s accident caught my attention and interest, and the content also engaged me to think about how much the Internet can blow certain things out of proportion, to the point it actually has affect on the company in question.
Although the above is also a bit of an exaggeration, it is very true that Tesla stocks did drop 10 percent, as Vivian also stated in her post, after the incident was reported and a video of this was posted on YouTube. The company suffered from this incident even though they might not have predicted that threats would come from such an unlikely external factor, which was a piece of metal that flew off a trailer and punctured the Model S sedan’s car battery.
Luckily, the driver did not suffer from any injuries from the accident. But for Tesla’s reputation as a brand, it definitely etched into the minds of its consumers that there are safety issues concerned with the Model S sedan. Because car buyers primarily take safety into account and they want to minimize their chances of being in a car accident, they will likely reconsider when it comes to Tesla vehicles in the future.
Vivian’s blog post includes well-written points about the incident, and I would encourage anyone who has interest to read it.
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Works Cited
Pfaffenbach, Kai. “A Tesla Model S Car.” Reuters. Reuters, Sept. 10 2013. Web. Oct. 7 2013.
Poladian, Charles. “Tesla Motors CEO Elon Musk Identifies Cause Of Model S Sedan Fire, Defends Electric Car’s Safety.” International Business Times. IBT Media Inc., Oct. 6 2013. Web. Oct. 7 2013.