According to Bloomberg
, Tesla Motors, Inc.
) has declared that the over-heating of a Model S charging system
was not responsible for the garage fire in Irvine, California on
Nov 15. The Model S was being charged via a wall socket in the
garage, but the investigating Orange County Fire Authority
reported that the car battery did not cause the fire. However,
they were unsure if the charging system was responsible.
However, Tesla informed that the cable was damaged on the wall
side and not on the vehicle side. Moreover, the car did not catch
Tesla also examined the data log recording the charging cycles
of the car and found no evidence of temperature fluctuations or
faults in the battery or charging devices. The automaker said
that neither the car nor the battery caused the fire.
Tesla is already under investigation by the National Highway
Traffic Safety Administration (NHTSA) for a few fire incidents in
Model S cars. However, Elon Musk, the CEO of Tesla, expects the
Model S to be cleared by the NHTSA. He believes that the car is
safe and hence, does not expect the investigation to lead to a
In another news, the California Alternative Energy and
Advanced Transportation Financing Authority announced a $34.7
million tax break to Tesla with the intention of boosting
electric vehicle production in the state. The authority exempted
the automaker from sales and use taxes on new equipment worth
The equipment will expand Tesla's production capacity by
35,000 vehicles per annum and also increase the manufacture of
electric powertrains. This is expected to create almost 112 jobs
in California besides helping improve the air quality. Moreover,
the rise in employment and car sales should generate enough tax
revenues for the state to compensate the $34.7 million tax
Tesla had received a tax exemption on the purchase of $612
million worth of equipment earlier as well. The company used the
equipment to retool its Freemont plant and manufacture Model S
and Model X cars.
Tesla currently has a Zacks Rank #4 (Sell). Better-ranked
automobile stocks include
Honda Motor Co., Ltd.
Tata Motors Limited
Ford Motor Co.
). All these stocks carry a Zacks Rank #2 (Buy).
FORD MOTOR CO (F): Free Stock Analysis Report
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TESLA MOTORS (TSLA): Free Stock Analysis
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