Elon Musk Of Tesla Motors Inc (NASDAQ:TSLA)’s Model S

Posted by George Brook October 6, 2013 0 Comment 938 views


Tesla Motors Inc (NASDAQ:TSLA)’s Chief Executive officer, Elon Musk has defended the Model S safety after a fire broke out on 1 October, in one  the cars that was being driven in Kent, Washington. The fire that broke out after the Model S struck metal debris while on the road has raised many questions about the lithium-ion battery that is used in it.

Musk posted a statement on the company website that said that the debris was a section that must have fallen off a semi trailer. The car has a warning system that alerted the driver to pull-over and he exited the vehicle. The fire broke out after the driver had moved out of the vehicle said the company.

Adverse effect

In the statement, Musk said that the structure if the object as such that it created a powerful lever-action as it got caught under the car that was in motion. It punched upward and impaled the car with a 25 ton peak force. He said that had a traditional gas-driven car been in its place, the same thing would have occurred. The news of the fire is the 1st involving the company’s vehicle and over 2 days the company’s shares dropped by 10%. There are concerns that this incident will have an adverse effect on the image of the company.

Musk said that for consumers who are concerned about the risk of fire in their vehicles, they should not harbor any doubts as it is much safer to drive a battery-operated car than it is to drive one that has a thankful of gas which is highly-inflammable. The company’s shares have risen 5 times over 2013 even as the company started expanding in Asia and Europe and posted its 1st quarterly profit.

Friday’s trading session

In Friday’s trading, Tesla Motors Inc (NASDAQ:TSLA) rose by 4.43%. The shares opened at a price of $17.40, climbed to an intraday high of $181.18 and dipped to a close of $180.98.



About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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