A NHTSA probe can lead to recall, but earlier this month Musk says he has no plans to order one because he doesn’t think it is warranted. The probe comes at an awkward time for Tesla, which has reported profitabiliity in recent quarters and saw a huge runup in the price of its stock. Even before announcement of the probe, Tesla shares had been taking a beating. Since the report of the two fires, plus one involving a traffic accident in Mexico, the stock price has fallen from about $180 a share a month ago. A day before the probe was announced, Tesla shares fell 10.2%.
Musk announced the steps in a lengthy post on Tesla’s blog. In it, he offers yet another strong defense of the car’s safety, especially as it relates to protection from fire. “We believe the evidence is clear that there is no safer car on the road than the Model S,” he writes. His company expects to produce more than 20,000 of the electric cars this year, which sell for about $70,000 and up.
He calls media reaction to the three fires a gross overreaction, especially given how thousands of conventional cars have been consumed by gasoline fires from ruptured tanks over the years.
He says his battery-powered car is actually safer than just about any gas-powered car on the road.
Article Appeared @http://www.usatoday.com/story/money/cars/2013/11/19/elon-musk-tesla-fire-changes/3637187/