Will Tesla Motors Be Forced to Issue a Model S Recall?

Tesla Motors (NASDAQ: TSLA  ) has skyrocketed in value over the past year because of its award winning Model S. However, the electric-car maker is under fire again after another Model S burst into flames -- this time, while the vehicle was parked. Toronto Fire Services said the fire started in the engine area of a Tesla car in a Toronto parking garage earlier this month, though Canadian officials have not yet confirmed the actual source of the fire.

A spokeswomen for Tesla said, "In this particular case, 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."

Smoking hot cars
Tesla certainly makes beautiful cars. However, concerns over potential fire risks could hurt the company's reputation for quality and safety. This blaze marks the fifth Model S fire in the last five months. If you remember, these prior incidents sparked a firestorm of negative press for Tesla that led to an investigation in November by the National Highway Traffic Safety Administration.

Source: Wiki commons

As more Model S fires have occurred in recent months, Tesla's critics put added pressure on the company to issue recalls addressing the issues. To quell concerns, Tesla released an over-the-air update in January, which gave Model S drivers more control over their cars' air suspension ride height. The software update was Tesla's answer to two fires that broke out after the owners collided with road debris. The company also revamped the charging software in response to a fire that occurred while a Tesla Model S was charging.

A futuristic recall
These so-called "over-the-air updates" are actually working in Tesla's favor because they highlight the sheer convenience of owning a Tesla. Unlike traditional automakers, Tesla is able to deploy modern day recalls that can be achieved by simply updating the car's software remotely. While we'll have to wait to find out the cause of the latest fire, Tesla's ability to fix system glitches in real-time reaffirms Tesla's commitment to quality.

Up to this point, Tesla appears to have curbed investor's worries over car fires, even without issuing a recall in the traditional sense. In fact, it's the stock that' has been on fire recently -- up more than 30% so far in 2014.

Moreover, news of the latest fire comes after a record week for the EV maker. Shares of Tesla zipped ahead this week, climbing as much as 12% to trade near $200 apiece. Fires aside, investors will get more insight into the state of Tesla's business on Monday when the company reports fourth-quarter results. Until then, here are six more reasons to love red hot growth stocks like Tesla today.

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  • Report this Comment On February 15, 2014, at 12:46 PM, NavyChum wrote:

    Probably not.

  • Report this Comment On February 15, 2014, at 12:46 PM, Jim5437532 wrote:

    There has been at least five significant Tesla related fires.

    The most recent Tesla garage fire to hit the news was in Toronto. The car supposedly wasn't even plugged in, so the charging system isn't likely to be a source. I'm hoping to hear reports from the fire departments investigation, because I don't trust Tesla's "fire investigations", which seem more like coverups.

    There has been at least five Tesla fires. Two Teslas caught on fire after only running over road debris. One Tesla caught on fire and exploded after being in an accident in Mexico. There was a Tesla fire in a California garage, that the Tesla charger connection was ruled as a possible source of the fire by the fire department. Recently there was a Tesla garage fire in Toronto, that so far I haven't heard the fire department give a ruling. Arguably there has been scores, possibly hundreds of minor Tesla fires. There has been a plethora of Tesla charge connectors that have overheated, melted and burned. Though many Tesla shills will argue that they are not fire. Categorically and scientifically they are often classified as fire. Rapid oxidation or rapid decomposition is often classified as fire. Like the metaphor; where there is smoke, there is fire.

    A few months ago there was a Tesla related garage fire in California that the fire department ruled that the Tesla charging system was a possible source of the fire. The suspect portion of the Tesla charging system that the fire department in California determined was a possible source of the California garage fire, is also suspected in many other Tesla charger reported cases that Tesla charge connections have overheated, melted and burned. Tesla issued a software "fix", however Tesla charge connectors have continued to overheat, melt and burn despite the so-called "fix".

    The Tesla model S. still has defects that make it a fire hazard. Tesla charger connections are still overheating, melting and burning. Tesla batteries are poorly located and poorly protected. Tesla is Junk.

    On 1/9/2014 Elon Musk said that replacement adapters that are part of the recall would be mailed out within two weeks. A month later Tesla customers have still not received the replacement adapters that are part of the Tesla model S. recall.

    Several people have been injured by faulty Tesla charge connectors. Tesla is big on making promises and hype, but short on delivery. Tesla needs to start making safety a top priority. Tesla needs to stop playing blame games and games with semantics. Tesla needs to stop lying. Tesla needs to be proactive instead of reactive. Tesla is being a follower of technology, rather than a leader. Tesla is a greedy corporation that has a disregard for safety. The Tesla model S. is an E-Pinto.

    Tesla manufactures more excuses than cars.

  • Report this Comment On February 15, 2014, at 1:42 PM, Ustauber wrote:

    @jim5437....

    Are you still licking your wounds..

    Reading all your articles seems that you had lost

    A lot of principal on Tesla shorting strategy .

    It i was you, just keep driving your Toyota Prius

    Oh wait .... You can't because they have RECALLED

    OF THEM.lets say over 2 million cars.

    Why you make a comment about that instead .

    If funny looking at the time of your numerous

    Negative comment about Tesla and the time you wrote them is always following an uptrend of the Tesla shares.

    Sad

  • Report this Comment On February 15, 2014, at 1:48 PM, Albertico wrote:

    "In this particular case, 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."

    Why would they issue a recall? Just because a car happens to be somewhere where a fire occurred does not mean it was the car's fault. If this is the case why are we even jumping the gun and blaming the car?

    If memory serves me right, this is only 4th fire involving the vehicle, not the 5th. The previous fire related incident had to do with the charging adapter and faulty wiring which had nothing to do with the vehicle itself. Something that needs to be corrected in this article.

    Maybe 4 possible fires involving the Model S and people want a recall? There's over a dozen fires every day in gas ICE vehicles. Why aren't we asking to recall those too?

  • Report this Comment On February 15, 2014, at 1:50 PM, Ustauber wrote:

    @jim5437....

    Are you still licking your wounds..

    Reading all your articles seems that you had lost

    A lot of principal on Tesla shorting strategy .

    It i was you, just keep driving your Toyota Prius

    Oh wait .... You can't because they have RECALLED

    OF THEM.lets say over 2 million cars.

    Why you make a comment about that instead .

    If funny looking at the time of your numerous

    Negative comment about Tesla and the time you wrote them is always following an uptrend of the Tesla shares.

    Sad

  • Report this Comment On February 15, 2014, at 1:54 PM, SteveTG3 wrote:

    Jim very serious allegation you make of a cover up. While it is possible you've offered no evidence.

    Jim direct question are you saying Tesla has covered up serious injuries and deaths?

    If so how did they do this how many families, hospitals and coroners offices do you think are part of such a cover up?

    If not, isn't the bottom line NEVER A DEATH OR SERIOUS INJURY FOR THOSE IN A MODEL S.

  • Report this Comment On February 15, 2014, at 2:54 PM, FrankoJames wrote:

    Thank you for the plastic water bottles.

  • Report this Comment On February 15, 2014, at 4:23 PM, RobertFaheyJr wrote:

    What was the point of this piece? Anyone could have written this half-assed digest of recent events just from skimming Google.

  • Report this Comment On February 15, 2014, at 8:25 PM, BloviationNation wrote:

    Most of the nearly 200,000 fires that occur every year in gasoline cars also start in the engine bay. Of course thats not big news. Big money keeps this quiet anyway. Like the over 500 people who died in Ford Pinto fires. Initially Ford figured out that it would be cheaper to simply pay the law suits then it would be to endure the cost of a massive recall.

  • Report this Comment On February 15, 2014, at 10:42 PM, iwannatesla wrote:

    The Mexico fire was do to an individual that was more gassed up than an I.C.E. vehicle. The police report stated that the Models S involved ricocheted across more than 60 feet of debris while it was still airborne. Btw, the owner "walked" away.

    @jim5437..."arguably"? "possibly"? "plethora"? what kind of tripe are you trying to spread? You are either a disgruntled individual that lost your shirt "shorting" Tesla Motors like a "fool" or simply a child trying to get a rise out of people for kicks.

    Tesla makes a superior automotive product, haters be dammed.

    p.s. you could also be connected to one of those (imho) shyster dealership companies that are afraid of losing their jobs.

  • Report this Comment On February 15, 2014, at 11:46 PM, JackB125 wrote:

    "Toronto Fire Services said the fire started in the engine area of a Tesla car in a Toronto parking garage earlier this month, though Canadian officials have not yet confirmed the actual source of the fire."

    I wonder where this "engine area" is???

    This is mainly because the Model S has no engine. It does have an electric motor in the rear axle area; but, from the photos that I have seen, that part of the car looked like it was not involved.

  • Report this Comment On February 16, 2014, at 2:00 AM, Zendwell wrote:

    Pretty sure Jim5437 started the fire so he could have something new to troll with.

  • Report this Comment On February 16, 2014, at 5:19 AM, JackB125 wrote:

    @Jim5437,

    For God's sake! Please cut & paste something new!

  • Report this Comment On February 16, 2014, at 9:20 AM, FrankoJames wrote:

    Funny; it sounds like all of the reported fires occurred in different areas. I am not a TSLA shareholder because I wanted to go ELON on BLDP but the RC car one the race against the PAC.

  • Report this Comment On February 16, 2014, at 9:22 AM, FrankoJames wrote:

    Won ( Kindle Spellcheck)

  • Report this Comment On February 16, 2014, at 9:25 AM, FrankoJames wrote:

    I think Sony had a few battery problems that hindered the longterm performance of the FM Walkman.

  • Report this Comment On February 16, 2014, at 9:40 AM, FrankoJames wrote:

    FYI; I do not currently own shares of the IWF.

  • Report this Comment On February 16, 2014, at 11:32 AM, Raixie wrote:

    To Jim Number

    How can an electric car "explode"!?!

    This accident in Mexico was at high speed and the car hit a tree and a concrete wall. The fire declared afterward and, as for the two others that hit heavy steel road debris at high speed, the owner thanked Tesla for the security of the car and ordered another one on the same week!

  • Report this Comment On February 16, 2014, at 12:05 PM, FrankoJames wrote:

    You could fill the TSLA up with TNT and then light a cigar as you crash into the tree. Noteworthy; I am not really talking to you.

  • Report this Comment On February 16, 2014, at 4:34 PM, FrankoJames wrote:

    I would like to delete that last post of mine and replace my latter comment to Tammy with nice to meet you; however; I am not sure if the hat is fully loaded or not and thank you for allowing my classically trained nerons to sinaptically fire properley for a few moments in time. P.S. all of the turtles that I have seen pictures of today look fine and healthy. Enjoy the slow.

  • Report this Comment On February 16, 2014, at 8:40 PM, FrankoJames wrote:

    As far as I know; not a single person or multiple people of people have yet to die in a Tesla.

  • Report this Comment On February 16, 2014, at 8:42 PM, FrankoJames wrote:

    When a person dies in a Tesla, please let the media know; other than that, goodnight.

  • Report this Comment On February 17, 2014, at 6:20 AM, Jim5437532 wrote:

    @ Raixie

    Don't you even have an elementary science education? You've never read a warning label on a battery? You don't know much about Tesla or batteries.

    All three of Tesla battery fires likely had explosions after catching fire. The Tesla that that crashed in Mexico, is on video burning and exploding.

    Tesla has been on international news exploding. Yet lying Tesla shills have claimed there hasn't been any Tesla battery explosions. lol

    http://youtu.be/RCn1CufaCYc

    If you shoot a lithium battery it is likely to catch fire and or explode. If you shoot a gasoline tank, it is unlikely to catch fire and or explode.

  • Report this Comment On February 17, 2014, at 11:40 AM, Batteryprof wrote:

    You are fools if you think a fire in a basement is not an --- enormous --- the worst --- SAFETY PROBLEM for a car ...

    Plugged or unplugged ...

    A short circuit could cause a fire even on a normal network (12V or 24V), it is the worst safety problem as a full bulding could fire at night ... By chance there was a working smoke detector.

    Events like that shall be at least 10E-9 for one car during one year at least if you respect automotive norms ...

    They will have problems with regulators ...

    The problem is that the short can happen anywhere in the car: HV / LV voltage wire harness design is the hardest thing to do in terms of safety (fuses, overcurrent detection, safety relays, communication with charger ...)

    For the software to be able to detect, the electronic has to stay on --> or only passive safety components work! (big shorts ...)

  • Report this Comment On February 17, 2014, at 6:39 PM, FrankoJames wrote:

    If I had to answer your question in your opening statement, no. Tesla did not make the battery. If you have a problem with manufacturing, you can always give Dell a call. Noteworthy; Musk build the drive train in that TM; not my parents old F Pinto.

  • Report this Comment On February 17, 2014, at 6:40 PM, FrankoJames wrote:

    I want AMZN to recall the spell check in my Kindle.

  • Report this Comment On February 17, 2014, at 8:11 PM, FrankoJames wrote:

    I wonder if BO Jr. Has a copy of Big BOs birth certificate?

  • Report this Comment On February 17, 2014, at 8:13 PM, FrankoJames wrote:

    PRLB not. I am tired of talking to a computer system. Does anyone watch movies these days?

  • Report this Comment On February 17, 2014, at 8:18 PM, FrankoJames wrote:

    Was there an after market audio system installed in any of the firebots prior the the fire? I like your your picture of that Saturn Ion produced by that SolarCity stock pop. Lets just be thankful that stocks in america generally do not trade at book value.

  • Report this Comment On February 17, 2014, at 8:22 PM, FrankoJames wrote:

    By any chance does anyone know if the President of North Korea was born in America? I thought that I saw him in a Pinto with some basketball players when I was kid visiting the Detroit Zoo.

  • Report this Comment On February 17, 2014, at 8:27 PM, FrankoJames wrote:

    Sorry; that last comment might have just been a comedian that I saw on a television.

  • Report this Comment On February 17, 2014, at 8:29 PM, FrankoJames wrote:

    I still think Must should have spent a few bucks more per battery and put in some ENZ packs.

  • Report this Comment On February 17, 2014, at 8:34 PM, FrankoJames wrote:

    No. Those batteries should have been built by ENR.

  • Report this Comment On February 17, 2014, at 8:34 PM, FrankoJames wrote:

    ENZ has a negative PE.

  • Report this Comment On February 17, 2014, at 8:36 PM, FrankoJames wrote:

    In otherwords; TSLA has to stop drinking the Panasonic.

  • Report this Comment On February 18, 2014, at 10:04 AM, FrankoJames wrote:

    I don't know the answers to all of your questions.

  • Report this Comment On February 18, 2014, at 10:14 AM, FrankoJames wrote:

    I hope that you were able to read that large block of text that dissapeared when I hit the "post your comment button" last night. Regardless; I am seemingly recovering from my writers block and have decided to use my freedom of undefinable speech while I can still see, type and read. You canadk Musk if he is going to recall those cars; he isnit the CEO of NCC.

  • Report this Comment On February 18, 2014, at 8:13 PM, BillMarshall995 wrote:

    For Musk to compare his cars to the general population of cars would be like comparing Olympic athletes to the general population of people. If musk were supplying the athletes with his tesla koolaid and there were four heart attacks would he get away with saying that in the general population there are thousands a year?

    Why not compare his toy to the 2012 S class Mercedes, Porsche, BMWs Audis and caddies?

    In fact to make it really scienticific lets just count the first 20,000 off the assembly line like Tesla.

    Tesla made a big point of letting us know that the fire in the garage was NOT from the batteiries or charger hookup... They use this as a defense? What I see is that there are now THREE possible reasons to fear a fire.

    The other car companies will build their own versions and sell them at a loss to just get people in the showroom to look at their other offerings. When there are 5 Electric high line cars they will steal enough market share to cripple Tesla and it has nothing to fall back on as its costs will simply be too high.

    The other contenders will band together and set up their own chargers as a group and will get tax credits to do so. Tesla will be left in the cold unless it shares its chargers with its competition.

    And lastly, the entire underside of the car is a sheetcake of batteries that if dented will short out, possibly hours or days later. When this happens and a Tesla burns down a house with children in it or a celebrities 8 car garage full of collectible cars this stock will drop like a stone.

    Musks ego can't fix this obsolete iphone 3 of a toy.

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