logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Tesla and General Motors Both Facing Fire-Related Recalls

By  +Follow January 14, 2014 4:06PM
Share:
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.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for TSLA
ProTradersNews
20 Dec 14 06:13:02
$TSLA: Tesla Back Above $200 Per Share: A Technical Look http://t.co/JLx6eWcn0H http://t.co/MXE6SskdF7
StockNewsWires
20 Dec 14 06:13:02
$TSLA: Tesla Motors (TSLA) To Open First Battery-Swap Station http://t.co/szZuR64raq http://t.co/ecjUSbcPn4
Sufiy
20 Dec 14 06:11:54
RT @ILCtsxv: How Can You Charge #Tesla Model S? https://t.co/fgIAnjOrKO @elonmusk #EVs $LIT $TSLA
Bidness Etc
20 Dec 14 06:02:55
Tesla will be opening its first battery-swap facility in California - http://t.co/W60OMbd9YD $TSLA http://t.co/PNOd27m5eu
Jered Collins
20 Dec 14 05:54:21
@MsPutOptions @diggingplatinum you are crazy. You created a senseless vendetta against me a couple of weeks ago because I questioned $tsla
Chris Bit
20 Dec 14 05:48:25
Why $2 gas is no problem for $200-a-share Tesla: http://t.co/lGBzAt9dHk $TSLA
Langan Stocks
20 Dec 14 05:27:39
$BEAV Short Sales Updated Saturday, December 20, 2014 08:03:25 AM $GPRO $TSLA $IYT $IYR http://t.co/Drtr4UL4dX
Rosner Stocks
20 Dec 14 05:27:14
$NBR Financials Updated Saturday, December 20, 2014 07:59:25 AM $XLU $DBA $TSLA $HD http://t.co/XwSEEUmIlP
Fitzstock
20 Dec 14 05:20:11
$TSLA dec 250 puts +168% from FCPS engaged entry short http://t.co/AeqeQUacyY
Fitzstock
20 Dec 14 05:18:19
Some Top FCPS December contract trades.......... $googl $line $tsla $avgo $mbly $cbst $xray $tgt
Pivot Point Trading
20 Dec 14 05:12:33
WEEKEND RECAP :) $AAPL $AMZN $BIDU $CAT $TWTR $FB $HAL $GOOGL $TSLA $NFLX $SBUX $FAS http://t.co/4x3GQEQNFc
Eliraz Dixon
20 Dec 14 04:53:14
RT @OMillionaires Where is $TSLA headed
Mahbubullah Dodswell
20 Dec 14 04:42:58
it's always a good time when stocks fall 4little reason $WSM $RAX $KING Fed today IMO wil make firm ,0025% $SCTY $TSLA
Polyticks
20 Dec 14 04:42:00
RT @rickjnewman: Check in this time next year. You'll be poorer RT @jhoblik @raywert last chance to buy Tesla under 220. From now it will b…
Azrael Bringloe
20 Dec 14 03:57:39
WOW! What a day in the market! Here is a recap of today's activity $FB $TSLA
Bertel Schmitt
20 Dec 14 03:34:09
With more and more pundits proclaiming that $2 gas is no problem for $TSLA, I slowly believe it will
Shwetha Ramesh
20 Dec 14 03:23:04
RT @MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/F2h1gdO8II $TSLA
12Stocks.com
20 Dec 14 03:02:06
Weekly Nasdaq100 #Stocks Performance $VIP $MYL $WDC $KRFT $STX $SPLS $MNST $DISCA $CTSH $TSLA $ISRG $CHRW more@ http://t.co/YdSIjGiCGR
Bertel Schmitt
20 Dec 14 03:00:12
It's a miracle! $TSLA Superchargers explode to 1,748. And we'll multiply gas stations by number of nozzles #StopTheBS http://t.co/IEG7dsxLuq
Sanaka Barthod
20 Dec 14 02:46:00
RT @OptionAlarm $TSLA is dying to run today, Not one to short today, #calls #patience
Nextassets
20 Dec 14 02:45:32
Why $2 gas is no problem for $200-a-share Tesla: http://t.co/2iKM2HoIH7 $TSLA
IH News Desk
20 Dec 14 02:39:17
$XLY Last Price Updated Saturday, December 20, 2014 05:11:23 AM $PG $GILD $SCTY $TSLA http://t.co/BtbGEefLxD
iHangout
20 Dec 14 02:10:42
chartguy89: 2014 Trending Stocks: TSLA +0.47% Stock Charts $TSLA Tesla Motors Inc. http://t.co/W0NPPizfdW
Leonie Machado
20 Dec 14 02:01:44
5 Stocks you should be watching $ANF $FITB $TSLA $CSIQ View now http://t.co/Hg2Ux0jOjI
Thurman Barham
20 Dec 14 00:54:06
Are you putting your money in $TSLA $CAB $MCD $S Click http://t.co/wmoyPttWhi
Darius Begay
20 Dec 14 00:25:58
Latest information on #stocks like $TSLA $XL $FISV $CSIQ #financial http://t.co/1qlt8uZ94k
Bertel Schmitt
20 Dec 14 00:24:48
$TSLA has more plugs than "CHAdeMO, since the units rely on a single plug" http://t.co/7gB9Ye5yDW Really? http://t.co/Mk90DQ55xn
Rosner Stocks
20 Dec 14 00:21:10
$GRCU Percent Change Updated Saturday, December 20, 2014 02:59:25 AM $GOOG $SVXY $TSLA $TLT http://t.co/3NX079RNl2
dmackdaddy
20 Dec 14 00:07:37
"Tesla CEO: Roadster Update Details Coming Next Week; Is A 400 Mile EV Now A Reality?" $TSLA http://t.co/QLWFD6qNOR
Stephen s
19 Dec 14 23:51:50
RT @rosnerstocks: $MYEC Financials Updated Saturday, December 20, 2014 01:59:25 AM $BIDU $TSLA $USO $AZFL http://t.co/l4ZsAdzeCA
Parag Kalra
19 Dec 14 23:39:43
Swap the #Tesla battery in 3 minutes and at a cost slightly less than a full tank of gasoline (premium sedan). http://t.co/yo78eOb6Ot $TSLA
Rafael Monagas
19 Dec 14 23:36:27
RT @MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/F2h1gdO8II $TSLA
Rush Seaman
19 Dec 14 23:32:26
Are you considering buying $GNTX $JNJ $TSLA $SSO Try this http://t.co/7pyP0kRlIc
FinSentS NASDAQ
19 Dec 14 23:30:21
$TSLA:US Biz Break: Tesla Motors to try out battery-swap station #TESLA MOTORS INC http://t.co/eJHEMCQ3hl #NASDAQ
@yauhui
19 Dec 14 23:20:54
And appropriately, the $TSLA ship has sailed. RT @MarketWatch Why $2 gas is no problem for $200-a-share Tesla: http://t.co/JgWIn1ujBy $TSLA
Rosner Stocks
19 Dec 14 23:20:05
$MYEC Financials Updated Saturday, December 20, 2014 01:59:25 AM $BIDU $TSLA $USO $AZFL http://t.co/l4ZsAdzeCA
Oleg Smirnov
19 Dec 14 23:18:28
RT @MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/F2h1gdO8II $TSLA
OTPicks.com
19 Dec 14 23:14:16
http://t.co/NYsxQOU64w Jake13: $TSLA Buy? Click here to find out if $TSLA is a: Jake13 http://t.co/KITakDsEBQ http://t.co/NYsxQOU64w
OTPicks.com
19 Dec 14 23:14:14
http://t.co/QkCFZ8YF3c Jake13: $TSLA Buy? Click here to find out if $TSLA is a: Jake13 http://t.co/OeCTHjOait http://t.co/QkCFZ8YF3c
Victor Abr
19 Dec 14 23:14:07
RT @MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/F2h1gdO8II $TSLA
Meghan.T.Biro
19 Dec 14 23:09:54
RT @Bidnessetc: Bidness Etc takes a look at Tesla’s stock performance http://t.co/QZ9hqmEm5N $TSLA http://t.co/pv5OmVQsqX
Meghan.T.Biro
19 Dec 14 23:09:08
RT @Bidnessetc: #TeslaMotors Opens Largest Asian Store In Chengdu, #China http://t.co/BFBwrEjPXO $TSLA http://t.co/l5Tmihr3QC
OTPicks.com
19 Dec 14 23:04:07
http://t.co/NYsxQOU64w DennyT: PIR Headlines $PIR $KO $TSLA $XLP $ORCL Buy or: DennyT http://t.co/1owVqKH5Lk http://t.co/NYsxQOU64w
Erik
19 Dec 14 23:00:45
RT @MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/F2h1gdO8II $TSLA
Options TradingIQ
19 Dec 14 23:00:05
VIDEO: 6 Tips For Getting Started In Options Trading http://t.co/tiKGFupwRD $SPY $AAPL $TWTR $TSLA $NFLX
Uncle Buccs
19 Dec 14 22:56:52
RT @JoelShackleton: If you have to ask how much gas is, you can't afford a $TSLA. tesla to 350
JS
19 Dec 14 22:54:43
If you have to ask how much gas is, you can't afford a $TSLA. tesla to 350
stockmarketnow
19 Dec 14 22:43:19
RT MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/1QpBACTNjP  $TSLA
Justin Blandy
19 Dec 14 22:40:37
RT @MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/F2h1gdO8II $TSLA
Bassam M. Albaqawi
19 Dec 14 22:32:46
RT @MarketWatch: Why $2 gas is no problem for $200-a-share Tesla: http://t.co/F2h1gdO8II $TSLA
				
				
By  +Follow January 14, 2014 4:06PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.