Latest Tesla Model S Fire Has Virtually No Impact on Soaring Stock Price

FEB 16 2014 BY ERIC LOVEDAY 9

TSLA Stock Only Slightly Affected by Toronto Tesla Model S Fire

TSLA Stock Only Slightly Affected by Toronto Tesla Model S Fire

In the past, widespread media coverage of a Tesla Model S fire almost immediately led to TSLA stock prices sliding downwards.

Tesla Stock Goes Above $200 - Dips Slightly - Then Rises Back Up

Tesla Stock Goes Above $200 – Dips Slightly – Then Rises Back Up

That’s not the case this time around.

Tesla seems to be on too much of a roll for one garage fire to impact stock prices.

If you look upon the graphic above, you’ll see that on February 13 (the day news broke of the Model S fire in Toronto), TSLA stock prices slipped by a hair.

Immediately following the slippage, stock prices rose back up.

What this seems to indicate to us is that Tesla is now past the point in which one minor incident has a lasting impact on the automaker as a whole.

If true, then Tesla is established now, meaning that it’ll take a major event to bring down America’s most recent startup automaker.

And if true, then we’re certain that the execs at Tesla are breathing a sigh of relief, as the automaker has now gotten over one more hurdle that stood in its way.

 

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9 Comments on "Latest Tesla Model S Fire Has Virtually No Impact on Soaring Stock Price"

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Jeff D

I think it’s also an indication that people didn’t have too much faith in that Business Insider report either and want to get the full story before judging the company as a whole.

Bonaire

The stock twits and bulletin boards are claiming it was arson, that a guy left a cigar in the car, that it was the circuit breaker and all that. I’m sure all of it is in an attempt to get the last few dollars out of the stock on Tuesday.

ffbj

In addition two of the other fires had spectacular videos accompanying them. There were other factors chasing the stock down too with the earlier fires related to earnings disappointments. Tesla made their projected but investors where looking for even more.
Personally I think it is overvalued at this level, but that is neither here nor there.
Still, while the market was up Tesla was down slightly. Not much of an impact so far.

Tesla’s fire and accident don’t even compare to the ICE accident just now in Fresno, Cal. where a mother and four kids were killed as the car caught fire and the father following just behind them couldn’t get them out and had to watch them burn to death. Really tragic—won’t even make a snide remark about Fox today.

Driverguy01

I sold my stock at $200.54 around 2:30pm and it closed at $197.85, so it lost $2.69 in a few hours.
We’ll see on monday when everybody knows about the event.

EVerywhere

Not sure that was a wise decision since you may be required to pay a hefty tax on short term capital gains if you had those shares under a year. Or even if you had them for more than a year, realize your tax clock resets if you were to choose to buy back in.

Driverguy01

I’m in Canada and this is what i play with,…taxfree!

http://www.tfsa.gc.ca/

Spin

I would be worried more about the reliability rating of the Model S on Trudelta.com. Even thought it is only a small sample, (18 vehicles) the reliability of the Model S is terrible compared to other vehicles. Most of the problems are minor, but hopefully more Tesla owners that are not having problems report so their rating improves.

Rob Stark

The first three fires were battery pack fires after high speed crash.

The first two the market thought were isolated incidents after third there was panic this might be a fatal design flaw. After the third is when the stock price nose dive happened.

4th was caused by subpar house wiring that couldn’t handle the prolonged charging of the Model S.

This latest one appears to be a house fire where a Model S happened to be in the garage.

We know there was no fire damage to the battery pack, and no damage to the wall charger or cables.

What has not been ruled out is the 12v battery might have started the fire. Chances are remote but still possible.