Three fires and countless news stories later, the Tesla Model S is under a magnifying glass for what might be a design flaw, or might be much ado about nothing. Elon Musk is standing by his baby though, saying “there’s definitely not going to be a recall” for the Model S. He’d better hope he is right.
At question here is the Tesla Model S battery design. While so far there has been no injury related to the battery fire, Elon Musk and Tesla Motors are in the news for one thing or another every day, and not every store is going to be positive. There are thousands of conventional car fires everyday in America, but being an entirely new kind of car financed in part by taxpayers, people are going to nitpick, and Musk better get used to it.
The problem with Musk’s statement is that ultimately he has no say in whether or not the Model S is recalled. So far the government has declined to look into the issue, but that could change if other fires start to crop up and the Feds change their mind. This statement could come back to bite him in the ass if the Model S needs to be recalled. Despite the acclaim bestowed on the car by the owners of the fiery Teslas, the government may yet step in.
Tesla stocks has so far fallen about 22%, from over $175 down to $138 per share, and Elon isn’t happy with the media reports that have made him a household name. Unfortunately, it cuts both ways, and I have a feeling this statement could come back to haunt her.
Source: Bloomberg News