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Tesla and General Motors Both Facing Fire-Related Recalls

By  +Follow January 14, 2014 4:06PM
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The National Highway Traffic Safety Administration posted recalls for vehicles made by General Motors (GM) and Tesla Motors (TSLA) on Tuesday, citing problems that could cause the vehicles to catch fire.  Tesla has the easier path to compliance, with owners not required to bring their vehicle to the shop to get fixed.

For GM, the NHTSA said that the company is recalling approximately 370,000 2014 Chevy Silverado and GMC Sierra full-size trucks equipped with 4.3-liter or 5.3-liter engines.  The problem is with computer software that can allow the exhaust to overheat when the trucks are idling in cold temperatures.  The overheating can melt nearby plastic parts and result in an engine fire.  Eight fires have been reported to date, fortunately with no injuries reported.

The remedy is for owners to bring their trucks in to dealerships where the engine control module will be reprogrammed for free.

Tesla cars will never have the problem that GM is having as they don’t have an exhaust; they’re electric.  However, Tesla is recalling about 29,200 of its Model S sedans because the charging adapter, cord or wall outlet could overheat during charging, increasing the risk of a fire or burn injury.  That’s nearly all of the Model S sedans that were produced in 2013.

According to the NHTSA website:

Tesla will notify owners and provide an "over-the-air" software update. Some owners have already received this update. This update allows the Model S on board charging system to detect any unexpected fluctuations in the input power or higher resistance connections to the vehicle. If detected, the onboard charging system will automatically reduce the charging current by 25%. Tesla owners can verify that they have received the updated software (version 5.8.4 or later) by viewing the vehicle's center information screen. Additionally, Tesla will mail owners a replacement NEMA 14-50 adapter that is equipped with an internal thermal fuse.

In a bit of irony, maybe it’s a good thing that Tesla has the recall out for more than 29,000 of its electric cars because that figure is more than they expected to sell.  The company said that the fourth quarter of 2013 was its best quarter ever for the company by a long shot, exceeding corporate sales projections by approximately 20 percent.   The strong quarter even came in the face of negative press last year after a video surfaced showing a Model S catching fire (unrelated to the charging issue) after striking debris in the road.   Two other similar fires were also reported, prompting a NHTSA investigation.

Tesla reported Tuesday afternoon that it sold and delivered almost 6,900 vehicles during the fourth quarter.  This was well above the “slightly under 6,000” vehicles that the company previously forecast.  Tesla attributed the improved sales to its “superlative safety record” of the Model S and “great performance” in extremely cold conditions.  Again, a bit of irony given the news today.

The company said that Tesla cars have been sold in 31 countries to date and have cumulatively logged more than 200 million miles of driving.

The recall news didn’t affect shares of GM as it moved ahead 1.1 percent in Tuesday trading to close at $40.02 per share.  Tesla investors seemed to completely ignore the recall news and focus on the growing sales figures for the sleek, expensive cars.  Shares popped 15.7 percent to close the day at $161.27.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for TSLA
Bidness Etc
31 Mar 15 10:53:31
Bank Of America Believes Tesla Motors April 30 Announcement Is An Energy Storage Product http://t.co/XOSUnWdua8 $TSLA http://t.co/0dl4kCfSKN
Mehul
31 Mar 15 10:53:19
No conviction in $TSLA today.... the 5 min chart is like alternate green and rad bars
Nishanth Godalla
31 Mar 15 10:52:37
@ngodalla musks announcement abt new product line is most probably going to be direct selling of e-battery .. $TSLA long case may be
Nishanth Godalla
31 Mar 15 10:51:44
@ngodalla he has stakes in car dealership and electronic battery maker in china , so he is obviously worried with $TSLA ;
E•L•F
31 Mar 15 10:49:53
RT @alexcrippen: Buffett on @CNBC says he doesn't think Tesla's $TSLA direct-sales model will "pick up much steam"
Ntihin Satheesh
31 Mar 15 10:48:44
RT @AnalystWire: Global Equities' Chowdhry Provides Incremental Update After Talking with Tesla $TSLA Residential ... http://t.co/B9rWWwde6C
Brian Bolan
31 Mar 15 10:48:17
Warren Buffett states that he does not see the latest offering from $TSLA to 'pick up much steam' *** which confirms it will
Mr Charlie
31 Mar 15 10:48:01
I love Uncle Warren. But $TSLA and Iran?
STOCKER
31 Mar 15 10:47:36
Tesla's next big product could be batteries http://t.co/dWqgDTb77e $TSLA
HedgeMind
31 Mar 15 10:46:47
Warren Buffet CNBC comments on $TSLA: "I would doubt it would pick up much steam. I don't think car distribution system will change anyway"
Brian Bolan
31 Mar 15 10:46:04
Dougherty is out defending $TSLA -- Their $325 price target is based on $19 in earnings in 2020.
Raging Laker
31 Mar 15 10:45:54
Innovation Results From Process, Not Just Genius http://t.co/mQRMTap5yt #IBDNews via @IBDinvestors $TSLA $AMZN $NFLX $AAPL $FB $TWTR
Alex Crippen
31 Mar 15 10:45:35
Buffett on @CNBC says he doesn't think Tesla's $TSLA direct-sales model will "pick up much steam"
Anthony
31 Mar 15 10:44:17
RT @Benzinga: "Yesterday, when @elonmusk tweeted and $TSLA ran up, so did $TWTR." @racernic on http://t.co/5gW1M7dWxl #premarket
Anthony
31 Mar 15 10:43:12
RT @Benzinga: ICYMI @Wedbush's Ian Winer @racernic @RobertJHoffman @TripleDTrader @Spus covering $TSLA $ENH $USO #oil & $EUR: https://t.co…
WBW
31 Mar 15 10:42:33
with alleged new product, I doubt $tsla would turn profitable any moment sooner than 3005, that is year 3005
Anthony
31 Mar 15 10:42:11
RT @Benzinga: Wedbush Director Of Equity Trading: Elon Musk's Tweets Appear Desperate $TSLA http://t.co/NZrTpqPvue
Gavin Martinsson
31 Mar 15 10:41:45
Unless they can make some of their $TSLA cars sell for < $30,000, most people will just buy typical gas-powered vehicles.
Brian Bolan
31 Mar 15 10:41:43
Buffet about to profess his love for $TSLA
Quantified Alpha
31 Mar 15 10:41:23
http://t.co/gncTsPse4f maintains a "Strong Underperform" on $TSLA over next 12 months. #stocks $SPY http://t.co/Ddlypj64at
Gavin Martinsson
31 Mar 15 10:41:20
Unless you're a kid like me who makes north of $250,000 a year, you really don't need a $TSLA Seriously.
$COG
31 Mar 15 10:41:13
#toptickertweets $SPY $AAPL $TSLA $FXI $EBIX $GENE $TWTR $COG $USD $FB #sentiquant 20150331 12:00:04:782 … … … … …… http://t.co/ZDQTPJKTaS
FinancialJuice
31 Mar 15 10:40:48
Warren Buffett has stated that he does not see the latest offering from Tesla $TSLA to 'pick up much steam' #stocks
Gavin Martinsson
31 Mar 15 10:40:42
And the King of Omaha kills $TSLA haha
Harry Swensen
31 Mar 15 10:40:11
$TSLA tweets desperate? maybe.Lots of CEO's communicate with public/shareholders via social media....So....Musk can't ?LOL, smell JEALOUSY
.
31 Mar 15 10:40:05
Today's roundup $KO $CG $PGN and yessss $TSLA
WallStreet_3.0
31 Mar 15 10:37:39
@markbspiegel If it does implode when reality prevails, it should be much quicker IMO. $TSLA
dailystockplays.com
31 Mar 15 10:37:16
Global Equities' Chowdhry Provides Incremental Update After Talking with Tesla $TSLA Residential Battery Owner
Play Poker Game
31 Mar 15 10:36:11
$TSLA shorts just got a red hot poker up the kazoo from
$ Hedge Fund AI $
31 Mar 15 10:36:04
Ditch $TSLA! Earn 6% per month using our 'Top 10 Hedge Fund' Artificial Intelligence - http://t.co/JnYV7VSLtQ $QQQ @CNBC
Anthony
31 Mar 15 10:35:52
RT @OMillionaires: Lets see if the short interest decreases on $SCTY in proportion to daily energy increases ~~ $TSLA
Brian Bolan
31 Mar 15 10:34:48
RT @AnalystWire: Global Equities' Chowdhry Provides Incremental Update After Talking with Tesla $TSLA Residential ... http://t.co/B9rWWwde6C
Streetinsider.com
31 Mar 15 10:34:37
RT @AnalystWire: Global Equities' Chowdhry Provides Incremental Update After Talking with Tesla $TSLA Residential ... http://t.co/B9rWWwde6C
SIAnalystWire
31 Mar 15 10:34:27
Global Equities' Chowdhry Provides Incremental Update After Talking with Tesla $TSLA Residential ... http://t.co/B9rWWwde6C
Ryan Gilkinson
31 Mar 15 10:34:06
Trade: BUY 1 CONDOR on $TSLA: APR15 180/177.5/172.5/165 -0.09 http://t.co/whSfZiwnox
George EQ Johnson
31 Mar 15 10:30:03
$188 $TSLA EOD
Kevin Sharpe
31 Mar 15 10:29:58
Dale Vince V Elon Musk: at war over motorway #EV charging http://t.co/vU7b9209HF #Ecotricity #Tesla #ukcharge $TSLA http://t.co/jqvvPuCD3W
NjaC
31 Mar 15 10:28:31
RT @msumak: Wedbush Director Of Equity Trading: Elon Musk's Tweets Appear Desperate $TSLA http://t.co/6Ect6nI5ej via @benzinga
Juan Morra
31 Mar 15 10:26:53
RT @markbspiegel: As many of you have asked (not really), here are my long-term $TSLA price predictions 12/31/15: $125 12/31/16: $80 12/31/…
matt kolb
31 Mar 15 10:26:33
Wedbush Director Of Equity Trading: Elon Musk's Tweets Appear Desperate $TSLA http://t.co/6Ect6nI5ej via @benzinga
Juan Morra
31 Mar 15 10:26:14
@JoaquimAgusti hurray! $TSLA sold 120 cars in January and double that sale in March!!! hand clap...400$ here we come...for realz!
$COG
31 Mar 15 10:25:37
#toptickertweets $SPY $AAPL $TSLA $FXI $EBIX $GENE $TWTR $COG $USD $FB #sentiquant 20150331 12:00:04:782 … … … … …… http://t.co/ZDQTPJKTaS
George EQ Johnson
31 Mar 15 10:25:19
Hey @elonmusk ! How does it feel to lose respect? $TSLA A major new product and only a $10 bump! That is it! Be ready for $170s soon!
Ryan Gilkinson
31 Mar 15 10:25:15
Trade: BUY 1 CONDOR on $TSLA: APR15 180/177.5/172.5/165 -0.11 http://t.co/xbTjjcnDN0
BreakingStocksNews
31 Mar 15 10:25:07
$TSLA: Wedbush Director Of Equity Trading: Elon Musk's Tweets Appear ...: http://t.co/y3hOp4fZCh
Carolyn B Miciano
31 Mar 15 10:24:24
Complete courseware to become an Options expert http://t.co/n6J42WkyRH $NFLX $PCLN $TSLA
George EQ Johnson
31 Mar 15 10:22:37
I got some old laptop PC (pre-macbook) batteries. Can I tape them together like @elonmusk does for $TSLA ? If so, I got a home battery! Yay!
JoaquimAgustiCoderch
31 Mar 15 10:22:26
Tesla higher after Bloomberg reports of Chinese sales rebound http://t.co/tJopicnTNS $TSLA
Mark B. Spiegel
31 Mar 15 10:21:31
Please note that those $TSLA price predictions are very conservative. Musk may have a mental breakdown on Twitter and accelerate the process
George EQ Johnson
31 Mar 15 10:20:24
@TheRealXMoney @CNBC yes, super idea! Why not add another TON to $TSLA cars.
				
				
By  +Follow January 14, 2014 4:06PM
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