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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
23 Sep 14 15:02:19
If you signed up inJuly we had $KNDI $TSL $CMGE $GRPO $JRJC, $TSLA $CSIQ $TMKR these winners,now we have to wait right time and right price.
23 Sep 14 14:43:03
$TSLA Tesla Target Price Cut by JP Morgan Analyst, Shares Fall http://t.co/PGiYzs0Bsf
Olivier Tischendorf
23 Sep 14 14:42:28
$TSLA Tesla Motors - Potential Island Reversal Top. ---> http://t.co/qM50fav4xM http://t.co/Kr4ueDcylM
23 Sep 14 14:38:51
$TSLA BEARISH @ 250.41
23 Sep 14 14:32:45
@lilliefish @PipsToDollars long both $tsla and $scty. accumulate on dips. see ya in the #future
23 Sep 14 14:30:45
Keyless Driving http://t.co/AqkE9Lrxem #Tesla #TeslaModelS @TeslaMotors #TeslaLife #TeslaOwner $TSLA @Teslarati
Alexander Fernandez
23 Sep 14 14:26:54
$TSLA starting tomorrow volume will go down and diminish until end of week. Tesla tends to climb on weaker volume.
Alexander Fernandez
23 Sep 14 14:25:56
$TSLA market tripple digits down IXIC down again badly and Tesla hanging tough.. What does that tell you.
Joshua Payne
23 Sep 14 14:23:25
RT @PipsToDollars: I believe said something about a week ago regarding Elon Musk, his #fanboys and #bagholders $SCTY $TSLA
23 Sep 14 14:22:24
The point where you might want to buy Tesla $TSLA http://t.co/UEpfDtnoYs
Dave Neville
23 Sep 14 14:16:25
$TSLA: Tesla Stock Rally Is Running Out of Juice | InvestorPlace http://t.co/bUmTYsMH4H @investorplace
Dave Neville
23 Sep 14 14:15:45
Solar City Corp. and Tesla Motors, Inc.: Better Together ($SCTY, $TSLA): http://t.co/NE1YuNnMEw via @themotleyfool
Leilani Pips
23 Sep 14 14:10:46
I believe said something about a week ago regarding Elon Musk, his #fanboys and #bagholders $SCTY $TSLA
Joel Anderson
23 Sep 14 14:10:02
SolarCity (SCTY) and Tesla (TSLA): Joined at the Elon Musk $TSLA $SCTY $SPWR http://t.co/UKYdPW6vjM
Winborn Traders
23 Sep 14 13:55:21
Get Your 7-day Free Trial $ES_F Live Trading Room Visit http://t.co/auQ6VnwERN $SPY $FB $NQ_F $SPX $YM_F $TSLA $NFLX $TWT $QQQ $DJI
Emini Scalping
23 Sep 14 13:42:21
Get Your 7-day Free Trial $ES_F Live Trading Room Visit http://t.co/7n01tj4qub $SPY $FB $NQ_F $SPX $YM_F $TSLA $NFLX $TWT $QQQ $DJI
23 Sep 14 13:38:55
$TSLA setting up a larger move down http://t.co/hJz3ETIjkH
Easy Now
23 Sep 14 13:38:09
there is a risk now $TSLA opens below 244 tomorrow which could lead to a more aggressive selloff
Alexander Fernandez
23 Sep 14 13:31:12
$TSLA Sitting again at almost 50dma Hanging tough.
23 Sep 14 13:30:06
$TSLA closed at 250.41 with daily count to 2-0 buy needs to close above 263.82 tomorrow to recycle.
Carolyn B Miciano
23 Sep 14 13:28:51
20% to 50% in a week or two - powerful swing trades http://t.co/yLZsCIoFks $CMG $TSLA $BIDU
Winborn Traders
23 Sep 14 13:25:39
Get Your 7-day Free Trial $ES_F Live Trading Room Visit http://t.co/lIREoJPv8j $SPY $FB $NQ_F $SPX $YM_F $TSLA $NFLX $TWT $QQQ $DJI
Matt K
23 Sep 14 13:24:14
RT @RobInTheBlack: Inside Days for $IBB $OIH $XOP $TSLA $AMZN $LNKD $NFLX $PCLN #ohitson
Rob Smith
23 Sep 14 13:23:55
Inside Days for $IBB $OIH $XOP $TSLA $AMZN $LNKD $NFLX $PCLN #ohitson
Nerd Criollo
23 Sep 14 13:22:53
Hoy #Tesla Motors, Inc. $TSLA cerró a $250.41.
23 Sep 14 13:18:47
so will we get to "sell sell sell" http://t.co/N57eiXQ4I5 yes we will who is going to buy still.Buy $AAPL @ $75 or $TSLA @ $160 maybe
23 Sep 14 13:15:07
Tesla Motors Inc stock update for September 23, 2014 $TSLA http://t.co/LaqGorgXZN
محمد العجمي
23 Sep 14 13:09:19
RT @TraderHMS: 344: What kind you stocks do you prefer to trade? $FB $GILD $NFLX $XLF $BAC $F $TSLA $DE $S $AA $AAPL http://t.co/XiUmy4dwk4
23 Sep 14 13:08:56
@sassyoptions Which would be? $TSLA been poor lately.
23 Sep 14 13:07:03
RT @LaMonicaBuzz: Another lousy day for the broader market. But the momentum stocks actually held up well. Great day for $FB. $TWTR $NFLX $…
Paul R. La Monica
23 Sep 14 13:06:14
Another lousy day for the broader market. But the momentum stocks actually held up well. Great day for $FB. $TWTR $NFLX $TSLA up slightly.
Carolyn B Miciano
23 Sep 14 13:03:35
Free course on OnBalance volume http://t.co/G96WxJxmV2 $CMG $TSLA $BIDU
23 Sep 14 13:03:20
SolarCity (SCTY) and Tesla (TSLA): Joined at the Elon Musk $SPWR $SCTY $TSLA http://t.co/jfjBmEtO1z
Gennady Kupershteyn
23 Sep 14 13:02:39
The Greatest Trick The "Bear" Ever Pulled Was...http://t.co/3DL27I2SeE $DDD $GPOR $ASPS $YHOO $BABA $NFLX $BIDU $TSLA $SPY $QQQ $ES_F $NQ_F
Options Network
23 Sep 14 13:01:36
Yesterday was not easy but today much better with $AAPL $GPRO $TSLA http://t.co/RwcwA6Hz93
23 Sep 14 12:49:57
$TSLA action is not that great at all
23 Sep 14 12:48:34
took in $400 on $ULTA $DIA $KMX PUTS today $870 monday on $TASR +1270 so far. long $FWM $CRR $PIR short $TSLA $LNKD $HD $GPRO $NVTL $GILD
Frank Cesare
23 Sep 14 12:47:55
$TSLA gap up 255 fail or weak open r/g using 248.50 as a guide. doesn't hold the cloud 240 wash.
Carolyn B Miciano
23 Sep 14 12:40:17
Practical application of conditional orders http://t.co/l5BOj6kZvC $CMG $TSLA $BIDU
Alexander Fernandez
23 Sep 14 12:36:39
$TSLA I have been trading this stock for a while. Be afraid of the low vol if you are short.
Nick G
23 Sep 14 12:34:40
$TSLA charts still behaving like I want, gotta get both DEMA lines compressing near the bottom before I buy http://t.co/TxaRcWks1R
Wincrease Team
23 Sep 14 12:33:47
in $TSLA Sep4 240/237.5 bull put spread. +10% return if full credit by friday.
Day Traders Group
23 Sep 14 12:33:44
our $FB and $AAPL calls killing ...nothing to see move along $GOOG $PCLN $LNKD $BAC $JPM $$GS $TSLA $SPY $QQQ
Future Tech Investor
23 Sep 14 12:30:04
$AAPL super bullish. New HOD $TSLA $MSFT $F $GM $X $Z $S $T $A $AA $BAC $JPM $WFC $MU $FB $YHOO $BABA $DD $C $TWTR $BA $GS $AMZN $HPQ $LNG
Morningstar CDN FR
23 Sep 14 12:26:05
L'action de Tesla est chargée d'incertitude http://t.co/ClxZUOheHd $TSLA
Quang Doan
23 Sep 14 12:19:41
$TSLA pump back to 256.98. wow.... it must go nut and hit 259.43. lol
سارية الجبل-عالمي
23 Sep 14 12:16:13
RT @bo3bo32: $AAPL $GOOG $PCLN $NFLX $FB #OPTIONS $TSLA الان الداو بنزوله هذا اكمل هدفه اللحظي سيكون هناك ارتداده جيده باذن الله http://t.…
23 Sep 14 12:14:53
$TSLA - volume pretty much coming to a standstill, look for a late day fade
Future Tech Investor
23 Sep 14 12:10:49
$AAPL Bullish engulfing candle $TSLA $MSFT $F $GM $X $Z $S $T $A $AA $BAC $JPM $WFC $MU $FB $YHOO $BABA $DD $C $TWTR $BA $GS $AMZN $HPQ $LNG
23 Sep 14 12:08:27
$TSLA owners in China complain of insurance hassle and long delays for repairs
By  +Follow January 14, 2014 4:06PM



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