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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

Results for TSLA
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16 Apr 14 05:33:32
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16 Apr 14 05:24:40
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16 Apr 14 05:23:46
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Media Sentiment
16 Apr 14 05:21:43
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Tesla NY
16 Apr 14 05:19:28
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David Blair
16 Apr 14 05:19:02
$TSLA held the previous WEEKLY breakout level as discussed. http://t.co/v0q5IE3J9c Watching now.
Crew Daily
16 Apr 14 05:18:59
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Media Sentiment
16 Apr 14 05:17:03
$TSLA received a new alert. Find out why at http://t.co/WHJp8eTsSr #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 114
Alexander Fernandez
16 Apr 14 05:15:44
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Rocket Avenue
16 Apr 14 05:12:39
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16 Apr 14 05:12:05
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Alexander Fernandez
16 Apr 14 05:11:24
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Tesla NY
16 Apr 14 05:11:01
It’s More Than Cosmetic: Saleen Reveals a New Tesla Model S $TSLA #Tesla #EV http://t.co/04eGqN798b
Bruce J Moschella
16 Apr 14 05:10:55
$TSLA $190 is our key level while above we see $200. $299 is our breakout point
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16 Apr 14 05:10:04
$TSLA Lazard, Mitcham Industries, General Motors, Delphi Automotive and Tesla Motors highlighted as Zacks Bull and Bear of the Day...
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16 Apr 14 05:10:04
$TSLA Aston Martin Unveils Sub-$100,000 Edition for North America http://t.co/gtToCHVGqt
traderstewie
16 Apr 14 05:09:37
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自称British
16 Apr 14 05:09:22
RT @YahooFinance: The problem with @TeslaMotors? No one knows how to value it http://t.co/mR2x5tIGdR $TSLA
Colin Kuberski
16 Apr 14 05:05:24
$TSLA It's Official: Electric Car Sales Have Doubled Every Year For Three Years http://t.co/2xo0938VuE
C Guy
16 Apr 14 05:05:24
With $TSLA under $200, is CNBC the $YHOO channel now?
Nicholas Stohl
16 Apr 14 05:04:57
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Colin Kuberski
16 Apr 14 04:59:09
$TSLA Direct Auto Sales Bill Fizzles Out in Arizona Senate; Tesla Motors Will Try Again http://t.co/xdYONxRMKR
Ted Wozniak II
16 Apr 14 04:57:35
RT @YahooFinance: The problem with @TeslaMotors? No one knows how to value it http://t.co/mR2x5tIGdR $TSLA
The Science Source
16 Apr 14 04:55:39
Direct Auto Sales Bill Fizzles Out in Arizona Senate; #Tesla Motors Will Try Again - DailyTech http://t.co/Ch0omGpJCg $TSLA
Nicholas Stohl
16 Apr 14 04:52:36
$TSLA [video] Tesla's last day in New Jersey http://t.co/AkX4ASJdgr
Bidness Etc
16 Apr 14 04:50:31
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Brian Joseph
16 Apr 14 04:50:31
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MockTrade
16 Apr 14 04:48:27
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MockTrade
16 Apr 14 04:48:10
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16 Apr 14 04:48:00
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Clinton Majors
16 Apr 14 04:46:39
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16 Apr 14 04:46:36
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Marius Jackson
16 Apr 14 04:45:39
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Pets Go
16 Apr 14 04:45:23
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16 Apr 14 04:43:58
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Stock Terminator
16 Apr 14 04:42:59
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Colin Kuberski
16 Apr 14 04:36:04
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Nicholas Stohl
16 Apr 14 04:35:07
$TSLA One Factor Driving Tesla Motors (TSLA) Stock Down Today http://t.co/8VvpGTqQbP
Peter Goldberg
16 Apr 14 04:34:13
RT @ReformedBroker: A FUNNY THING HAPPENED ON THE WAY TO UTOPIA... http://t.co/fVwqIni11u $TSLA
Geoffrey Van Gelder
16 Apr 14 04:31:01
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Nicholas Stohl
16 Apr 14 04:30:12
$TSLA Tesla is the Most Shorted Stock: 2 ETFs to Watch http://t.co/E9hVCbA44c
Nicholas Stohl
16 Apr 14 04:30:11
$TSLA Are Tesla Analysts Asleep at the Wheel Again? http://t.co/4L0ZQqQnpg
BANCA-Y-ECONOMIA
16 Apr 14 04:29:02
RT @YahooFinance: The problem with @TeslaMotors? No one knows how to value it http://t.co/mR2x5tIGdR $TSLA
Colin Kuberski
16 Apr 14 04:24:45
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Nicholas Stohl
16 Apr 14 04:24:04
$TSLA A Wall Street Transcript Interview with Kenneth M. Conrad, Ph.D., CFA, a Portfolio Manager at BMO Global Asset Management for the...
The Science Source
16 Apr 14 04:23:49
#Tesla Shares Down 17% in Past Month - 24/7 Wall St. http://t.co/D5grefBnqU $TSLA
Allen Wastler
16 Apr 14 04:21:33
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Malissa Arsenault
16 Apr 14 04:21:14
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CABuyer
16 Apr 14 04:20:25
$TSLA: Tesla Shares Down 17% in Past Month http://t.co/8XuPFNH6Z5
Bob Pepitone
16 Apr 14 04:19:40
RT @YahooFinance: The problem with @TeslaMotors? No one knows how to value it http://t.co/mR2x5tIGdR $TSLA
				
				
By  +Follow January 14, 2014 4:06PM
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