Tesla Motors Inc (NASDAQ:TSLA): Should You Still Worry About The fire After The Recent Rally
With shares of Tesla Motors Inc (NASDAQ:TSLA) hitting an all-time high and the company approaching several milestones, another fire involving the Model S is raising new questions about the popular electric car.
The fire, during which nobody was hurt, happened earlier this month in Toronto, Canada according to a report by Business Insider. The report said a Model S parked in a garage caught on fire after it was taken for a drive and was not plugged in.
Tesla confirmed the fire while down-playing the incident. Spokeswoman Liz Jarvis-Shean said in a statement, “we don’t yet know the precise cause, but have definitively determined that it did not originate in the battery, the charging system, the adapter or the electrical receptacle, as these components were untouched by the fire.”
Fifth fire in five months
The fire in Canada is the fifth blaze involving a Model S in the last five months. Two of the fires occurred after owners of the cars drove over debris in the road which punctured the battery compartment of the electric car.
The National Highway Traffic Safety Administration (NHTSA) is currently investigating the safety of the Model S battery system. There is no indication when that investigation may be completed.
Tesla CEO Elon Musk has said he believes the NHTSA probe will end without a recall of the Model S.
Musk and Tesla executives have repeatedly pointed out no deaths have ever been linked to fires involving the Model S.
“The Model S continues to have the best safety track record of any vehicle in the world,” said Jarvis-Shean.
Tesla shares crack $200
The latest report of a Model S fire same just hours after Tesla share finished the day at $199.63, a new all-time high for the stock. During Thursday’s trading session Tesla shares traded above $200.
In the last month, Tesla stock has soared 43.27 percent, regaining the momentum that drove it higher through much of last year.
Tesla will report fourth quarter and full year earnings next Wednesday. Analysts will be focused on whether the company will raise its forecast for how many Model S vehicles it expects to build this year.
The earnings report is the first of several potential catalysts for Tesla this year. Over the course of the next few months Tesla is expected to announce plans to build a “giga factory” to increase production of lithium-ion battery cells.
Tags: Tesla Motors Inc (NASDAQ:TSLA), TSLA