This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tesla CEO: 'Definitely' No Recall Of The Model S


DETROIT (AP) a¿¿ Tesla Motors CEO Elon Musk says the company "definitely" won't recall its Model S electric car despite three vehicle fires in the last six weeks.

"The headlines are extremely misleading. If fire risk is your concern, you would have a great deal of difficulty being in any better car than the Model S," Musk said.

There is one fire for every 1,300 gas-powered cars on U.S. roads, and for the Model S, that's closer to one in 8,000, Musk said during an interview Tuesday at The New York Times' DealBook conference. He underscored that none of the drivers in the three cases was injured.

"There's definitely not going to be a recall. There's no reason for a recall, I believe," he said.

Rumors of a possible recall sent Tesla shares down 5 percent Tuesday to close at $137.80. They rose 2 percent in after-hours trading after Musk spoke. The stock is down by nearly a third since the first fire was reported on Oct. 2. In that case, the car hit a large metal object on a state highway near Seattle. In the second case, in Mexico, a Model S burned after a high-speed crash. Last week, a Model S caught on fire near Smyrna, Tenn., after its driver struck a trailer hitch in the road.

Musk, who described himself as "somewhat of a perfectionist," said Tesla would recall the Model S immediately if it thought the car had a safety problem.

Ultimately, that decision might not be left to Tesla. The government could decide to recommend a recall of the Model S, and could take the company to court if it refuses. The National Highway Traffic Safety Administration said late Tuesday that it's in contact with Tesla and authorities in Tennessee to decide whether it needs to take further action.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs