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Tesla Motors Inc (NASDAQ:TSLA) Recovers From Problems Of Fire In Model S

Boston, MA 10/14/2013 (wallstreetpr) – Recently, a fire was reported in Model S of Tesla Motors Inc (NASDAQ:TSLA) and there were reports as to whether the company will be able to deal with the same. However, the company wasn’t impacted a great deal and the company took the right actions to deal with the problems.

Alex Davies, business insider claims that despite the fact that the Tesla batteries are like a bomb, the company has taken care to set up a lot of firewalls that ensures enhanced safety for those who are driving such cars. The company succeeded in determining the main cause of the fire and they also accepted that the cause of the fire was the battery.

Additionally, the company went on to inform both the customers as well as the investors about the details of the situations and they did not put the blame on the driver rather accepted their flaw.

The move seems to have paid off brilliantly because blaming the driver would be one possible solution that most automakers would have resorted to. The car had actually warned the driver that there was some problem and he was meant to exit the vehicle. The driver wasn’t hurt despite the fire and this in itself proves the high level safety that is a part of model S. Tesla also improved their reputation further as they offered the driver a loaner vehicle and also came up with an official explanation of the whole event steering the driver clear of all problems.

There are a lot of cars fires that happen every day. It is wrong to blame that all model S cars can catch fires. The clear explanation provided by Tesla proves that the problem might not be with the car. Hence, the impact of the car fire didn’t burn out the company as a lot of people thought.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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