The car should not explode into flames hitting a tree going less than 20 mph. There is a serious design flaw with both the battery and its configuration. I smell a recall coming in the magnitude of billions to fix this significant safety issue. In fact it may be enough to bring TSLA into Chapter 11. In either case the stock is going to take a huge hit.
Are you talking about the fire in Mexico? In that accident, a pretty substantial concrete wall was taken out before the Model #$%$ the tree. See the article in the Diario de Yucatán that has a picture of the wall.
((( In fact it may be enough to bring TSLA into Chapter 11. )))
Maybe. But the potential liability would scare away many buyers. This company has some huge issues on the horizon. NUMMI is polluted and Tesla has to recognize that liability someday. The 'lease' program could result in large numbers of buybacks. The car has problems and Tesla's warranty repair system is not efficient.
The lease buy back is what I'm wondering about. Might end up taking a 10-15K hit on the resale but who knows??? At this time kind of Russian roulette with the batteries as far as how long they'll last??? My first stop would be a battery swap if I bought an off lease car. LOL. I'm sure their was a plan for the pollution issue no one is that dumb to move into a polluted site with no plan and I would bet the plan is not to pay for a complete clean up. I know the EPA now has new rules if you buy a dirty site and have a dirty business. Case in point and old motorcycle shop by me was polluted and was bought a gas station how did not need to clean up the site. Idea being why make dirty industries buy virgin land to pollute. I shouldn't say new rules I think they have been in effect for maybe 10 years now.
Battery is very hot when releasing energy and charging while driving. Super cooling system is used to cool them. If that cooling system stops, fails or degraded after accident, it burns easily because it takes long time for battery to cool down and there are thousand of small batteries in Model S.
A tough week is ahead. A lot of shares were traded from late August to mid-September in the 160s. This was a lot of institutional funds selling to retail buyers. Many funds sold after the first fire in early October. Fidelity already announced it had sold 4 million shares during Q3. I expect about the same ratio for TROWE price (the 2nd largest holder) who has yet to announce. Retail investors have to either hold to their irrational exuberance or decide how much opportunity cost they will leave on the table going forward.
The Vin # assignment has dropped strongly during October. This signals Q4 to have a potentially worse quarter than Q3. The only positive will be some new markets opening in Europe to take cars built for that market.
Right-hand cars for the UK will not even arrive there until late March, 2014. That market isn't even opened yet so it will be up to the USA (getting saturated) and China (new and unknown) for the next few months.
But, but... the Tesla crowd says it was 70 mph. Don't you remember the once in a lifetime accident 3 weeks ago that involved a large metal object and a 25 ton force, and how the indestructible Tesla withstood the impact like no car in history.? Why, in the minds of Teslarians, the car is doing so well in fiery crashes that maybe Elon is staging them.