This Day On The Street
Continue to site
ADVERTISEMENT
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 Motors Inc (TSLA) CEO Slams Media For Unreasonable Coverage

Tesla Motors Inc (TSLA)aCEO Elon Musk has trashed the media for its coverage of Model S fire accidents, calling it "extremely unreasonable", says a report from USNews.com. Over the past few months, the Tesla Model S has been constantly in the news for catching fire after accidents.

Although the company is taking every step to stem the tide, the stock price has become extremely volatile as investors turn cautious.

Media reports hurting Tesla share price

Since the issues of Tesla Motors Inc (TSLA)’s IPO in June 2010, when it traded at $17, the company has come a long way, witnessing a massive surge in stock price to $176, at present. However, with the media taking a greater interest in showing the Model S accident news, share price has been hurt substantially. Elon Musk, recognizing the expectation of the investors said:

"I don't believe in talking up the stock… I think the stock is a good deal where it is right now."

Musk denies media reports

When he was asked whether regulators have investigated the car fires, and if the Model S will undergo some change for preventing these fires from occurring, Elon Musk cast himself as a "perfectionist" when it comes to safety, and said that up to now, no one has been hurt severely while driving a Tesla Motors Inc (TSLA) vehicle.

The CEO said that the Model S is as safe as any other car on the road, and reports are overstated. "The headlines are extremely misleading," he said, and added that no one covers news that in 2010 a total of 184,500 vehicles caught fire in the United States in different accidents, as per the data from National Fire Protection Organization.

Since 2008, Tesla has sold approximately 18,000 cars and is looking forward to manufacturing an additional 20,000 Model S cars by the end of 2013.

Analysts reflect mixed reactions

Analyst Thilo Koslowski with the Garter automotive technology research firm said that inability of the car to protect its battery pack may have caused the fire, but it may be too early to draw the conclusion that Model S will see more fires.

Max Wolff, chief economist with the ZT Wealth investment firm, said that though cars catching fire is not as big an issue as the media is creating, but they are a huge problem for company perception.

-By Aman Jain

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,226.98 +168.63 1.05%
S&P 500 1,934.49 +20.64 1.08%
NASDAQ 4,706.7760 +70.6710 1.52%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs