The latest in a spate of bad news for
Tesla Motors, Inc.
) is the revelation that the factory which recently witnessed a
hot metal spill had earlier been fined for a safety violation
which had resulted in an injury. According to media reports, a
state official disclosed that the Fremont factory had been fined
$2,700 by the California Division of Occupational Safety and
Health last year.
The fine was imposed after an accident investigation revealed
that a hydraulic power press at the factory lacked a proper stop
control. Another factory of Tesla in a different location was
also fined two years ago for an accident. A worker was injured in
Although these incidents are not related to the recent metal
spill incident, they might raise concerns about the safety
measures employed in Tesla's factories.
The latest accident was caused by failure of a low-pressure
aluminum casting press, which resulted in the spilling of hot
metal that injured three employees. One of them suffered serious
burns on the chest and upper body. The other two suffered minor
injuries. All three employees were admitted to Santa Clara Valley
Medical Center in San Jose with second-degree burns. However, one
of them was released on Wednesday.
The California Division of Occupational Safety and Health will
look into the incident to see if safety specifications were met
by the factory. The government body will interview witnesses and
examine training documents and manuals.
The factory was formerly jointly-owned by
General Motors Company
). It was taken over by Tesla four years ago and was transformed
into a state-of-the-art facility.
The incident follows three incidents of Model S electric car
catching fire in five weeks. Consequently, Tesla's stock has
suffered significant losses in the last few weeks.
Tesla currently carries a Zacks Rank #3 (Hold). Another
Ford Motor Co.
) is worth considering at present, with a Zacks Rank #1 (Strong
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