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Tesla and General Motors Both Facing Fire-Related Recalls

By  +Follow January 14, 2014 4:06PM
Tickers Mentioned:

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.

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Results for TSLA
Caroline Pugh
2 Sep 14 18:33:59
“@HuffPostBiz: Tesla hit a new record high http://t.co/9MWv1gt06V $TSLA http://t.co/FulVadztID” go Tesla! #tech #innovation
Douglas Kass
2 Sep 14 18:33:02
@dondraper77 DD I covered the position as I tweeted and posted on RMP and Twitter. I made a small amt of $ and moved on. $TSLA
Chris Dunn
2 Sep 14 18:31:37
RT @Lebeaucarnews: $TSLA soars to new all-time high of $277.68 following Stifel upgrade w/ new price target of $400
Chris Dunn
2 Sep 14 18:31:11
RT @Lebeaucarnews: $TSLA upgraded to BUY rating w/ $400 price target by Stifel.
Stock Signaling
2 Sep 14 18:31:02
Volume Leaders: $PANW $ACAD $CSIQ $GRPN $LNG $VZ $GPS $STO $BDSI $ACHN $GPRO $SPLS $DG $TSLA $BAC http://t.co/Vtx6dLy0Nw #nasdaq #analytics
Joshua Hayes
2 Sep 14 18:30:09
Small Caps Rally; NASDAQ Volume Explodes http://t.co/7RcUU6nshM $STUDY $RUT $IWM $COMPQ $QQQ $FB $TSLA $SPX $SPY $DJIA $DIA
2 Sep 14 18:24:39
Kandi Simply Explained, And It's Valuation - CSIHawaii | Seeking Alpha http://t.co/URD3qjG0oN $kndi $tsla
Evan Yu
2 Sep 14 18:23:05
$TSLA $HD $TWTR - #stockmarket. #daytrade #daytrading #daytrader #optionstrading #optionstrade #optionstrader #stockpicksforYU
phil fratantonio
2 Sep 14 18:12:42
@jimcramer nice charts tonight on Madmoney. I like $FB $TSLA and $ UA. Great to see $REGN breakout tonight. $BIIB is next. $GILD aworkhorse
Livermore's Lounge
2 Sep 14 18:04:42
“@361Capital: Roses in the Market Today: $SPY $UUP $IYT $XAL $DAL $EWJ $INP $EWZ $TSLA $SPLS $CPWR $NCLH http://t.co/2XNjcJPqde” RT
Oliver Kell
2 Sep 14 18:01:52
RT @JFDI: Am I seeing this right? $TSLA made new highs again today? http://t.co/4gCn2uZwxQ
Justin Pulitzer
2 Sep 14 18:00:09
@kpricestox Don't worry, $TSLA will have a small down day & I'll be JoJo the circus idiot all over again. LOL
2 Sep 14 17:54:32
Here's my take on $TSLA $FB and $JCP http://t.co/rn5dMippPj My sincere thanks to @jimcramer for featuring my work.
2 Sep 14 17:54:06
$TSLA Can this continue it's climb as it makes new ATH? It sure can as has been evidenced by todays action. Stay/Get long 4 the 300 roll!"
Wu Weed
2 Sep 14 17:53:57
RT @PipsToDollars: So many choices today, think I'm gonna be a BASIC BITCH and buy the obvious; $TWTR $YHOO $GPRO $GRPN $TSLA
Market Updates
2 Sep 14 17:52:11
$TSLA: Tesla Motors Inc. (NASDAQ:TSLA) Warranty Increase to Affect Gross Margins http://t.co/pDCS62xpGv http://t.co/QR5if5Tayq
Johnny Shen
2 Sep 14 17:51:02
$TSLA Model S ASP probably closer to $150,000 if you include the accompanying dubiously-informed stock acquisition.
2 Sep 14 17:48:51
RT @jstrades44: - Someone call the cops on @smartertrader and charge him w/ 1st degree assault on $tsla and $bidu
Wesley Lucas
2 Sep 14 17:48:17
$tsla making a killing. When will it end.
Justin Pulitzer
2 Sep 14 17:48:11
I've been getting some requests for a dedicated $TSLA video. Any interest?
Justin Pulitzer
2 Sep 14 17:47:22
“@MartyChargin: @JustinPulitzer TSLA needs a new video already😄💵💵💵”<~LOL. I may need to do a dedicated $TSLA video.
Pangeran Arif A. H.
2 Sep 14 17:46:20
Christ on a school bus, $TSLA is now at $280, or up roughly 27% since last I admired this stock.
2 Sep 14 17:46:05
Looking like $AAPL the trade of next 100 days, but the trade of 2015 will be $FB $GILD $TSLA $GOOG $AMZN .
Tom Loffman
2 Sep 14 17:43:37
Biggest gainers today large caps: $PBR 5.52% $TSLA 5.35% $VIPS 5.28% $BKW 5.12% $PBR-A 5.05% $UAL 5.00% $BIDU 4.79% $CHA 4.41% $ASML 4.33%
Evan Medeiros
2 Sep 14 17:39:19
NEW VIDEO: market recap and some setups for the rest of the week http://t.co/fqmvkZyby1 $SPY $TSLA $FB $TWTR and more #stocks #trading
2 Sep 14 17:33:51
RT @JFDI: Am I seeing this right? $TSLA made new highs again today? http://t.co/4gCn2uZwxQ
Kheang Ly
2 Sep 14 17:31:27
The Trending 20 Index $T20 finished up higher today to 2105 led by $GPRO, $TSLA & $GTAT. Elsewhere... http://t.co/Emql7zgW10 via Scutify
Bill Hung
2 Sep 14 17:29:11
Great to see the leading stocks continue to lead. $TRUE, $BIDU, $TSLA. $CTRP, $BITA #Sitting
2 Sep 14 17:29:11
@QBtrades: @MsPutOptions what was $TSLA trading at when you put this trade on? Dont recall just looking at that gap up, not good for a b ...
Don Looney
2 Sep 14 17:23:24
RT @chessNwine: NEW POST: Stock #Market Recap 09/02/14 {Video} http://t.co/U47T6OvO72 $DGLY $ISNS $QQQ $SPY $TSLA
Kyan Tran
2 Sep 14 17:21:33
$TSLA can run to 290+ tomorrow weekly options paying big
♥ @MyOrgone ♥
2 Sep 14 17:14:41
Sell $TSLA!! Make 100% per year using our 'Top 10 Hedge Fund' Artificial Intelligence - http://t.co/x7MDlPJXnp @CNBC $SPY
LikeFolio Loves
2 Sep 14 17:12:46
RT @treehcapital: In fact, today, it matters only to hurt valuations @BennettWoodman: $TSLA "Profitability does not matter" http://t.co/GRr…
2 Sep 14 17:06:22
Great day 4 YPT Shadowlist 40+ #stocks,3 NCH's $TSLA $CTRP $AVGO , 3-8%+ $YELP $YY $DATA $BIDU $CMCM $SSTK $FEYE via http://t.co/MqfBGRQA7j
Lord Νιcholas
2 Sep 14 17:06:19
Am I seeing this right? $TSLA made new highs again today? http://t.co/4gCn2uZwxQ
2 Sep 14 17:02:23
@NYCPunter cramer ah $GPRO $TWTR $TSLA $NFLX ,must buys into the end of the year...nice $VIPS today...now where is my sleepr TD?
2 Sep 14 17:00:05
Waley Q.
2 Sep 14 16:59:17
$TSLA continuing it's slide up. Skies looking clear from here.
Scott Redler
2 Sep 14 16:57:24
Here is a link to today's video recap and look ahead $spy $spx $aapl $tsla $nflx $fb $twtr $ms $bac $gld $tbt $arwr http://t.co/CjqlqhGxJt
2 Sep 14 16:53:17
RT @StockTwits: Tesla hit a new all-time high today at $284.89/share. That means it's up 87% YTD and 1378% since its IPO. http://t.co/1SY…
2 Sep 14 16:53:13
Remember there is no technical resistance at all time highs #bullish $AAPL $TSLA #bullmarket http://t.co/3WYm5TJXqq
Stock News Updates
2 Sep 14 16:52:05
$TSLA: [video] Tesla's biggest bull http://t.co/s8eMcQOi4I http://t.co/0NRzmEJX0x
Brian Gallo
2 Sep 14 16:44:57
RT @PipsToDollars: Here is the PIPS TO DOLLARS 'Be an original but trade like a basic bitch' watch list. $AAPL $FB $TSLA $TWTR $YHOO $GRPN…
Charts and Carts
2 Sep 14 16:44:02
Least profitable stocks in Aug. 2014: 1) $ARWR (opt) 2) $VGPR 3) $NWGC 4) $TSLA (opt) 5) $NVCN 6) $FUEL 7) $ISR 8) $MSLI 9) $INSM 10) $ADEP
Carolyn B Miciano
2 Sep 14 16:42:47
Using ThinkBack for testing http://t.co/ttmGhHF7L4 $NFLX $PCLN $TSLA
Colin Macleod
2 Sep 14 16:39:38
September 2 2014 New 52-Week Highs http://t.co/GcsezhE7rx $AAPL $TSLA $ACHN $PBR $GILD $UAL $LUV $RFMD & More
Buy Fear
2 Sep 14 16:38:54
$QQQ $SPY - we are in a healthy market environment. Stay long the names that are working. $TSLA $TWTR $LOCO $BIDU
Leilani Pips
2 Sep 14 16:38:00
Here is the PIPS TO DOLLARS 'Be an original but trade like a basic bitch' watch list. $AAPL $FB $TSLA $TWTR $YHOO $GRPN $GPRO $GOOG
Dj Ozone
2 Sep 14 16:37:04
In my heart and soul I wish I worked for @elonmusk..But since I own $TSLA stock I got the second best option...He works for me @Tesla
james Bond 007
2 Sep 14 16:35:56
$TWTR once a stock is taken over by the bulls your best bet os to stay long and strong $TSLA $FB Bulls are back in town
By  +Follow January 14, 2014 4:06PM



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