Tesla Motors Inc. (NASDAQ TSLA) Car Crash May Not Be the Real Reason Shares Are Dropping

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An appalling crash involving a stolen Tesla Motors Inc. (NASDAQ: TSLA) vehicle may help strengthen the car’s safety claims. The vehicle, which was a Model S sedan, had split in two and burned upon crashing in Hollywood, Los Angeles. This was following a high speed chase. Authorities say that there were several injuring in the multi-car crash, but no fatalities at the scene.

According to sources, the sedan was stolen and involved in a high speed car chase early Friday. The stolen car hit a pole and split in half, injuring seven bystanders and passersby. The Los Angeles police department released statements to KTLA-TV, which also showed a video of the horrifying incident.

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Photographs released several hours later also showed that the Tesla’s rear end was lodged in between two walls, while the front end of the car was several dozen feet away in the middle of the street.

The electric car company wants to study the remainders of the stolen Model S. In a phone interview, Simon Sproule, a company spokesman, said “We’ve asked to take a look at the vehicle as soon as that’s possible. There aren’t so many S’s involved in major crashes, and certainly not quite like this one, so we absolutely want to have a look to understand what happened.”

The Model S retails for $71,000, and has received the highest rating for safety in crashes from the National Highway Traffic Safety Administration.

On Thursday, Tesla shares were priced at $229.25, after a 52% increase over this past year. On Monday after news of the crash got out, the price of shares dropped 2.9% to $222.26.

However, Tesla is experiencing problems that run deeper than the car crash over the weekend.

The electric car company saw its sales drop from in Norway, one of its biggest markets in Europe. Last month its sales came in at 536 units, a sharp drop from 1,493 the previous month. This caused its stock to drop 4.3%.

Additionally, Tesla is limited to five retail stores in the state of Pennsylvania, after a legislation passed in the House of Representatives, which intends to prevent competition between Tesla and other dealerships.   Ohio and New York have followed suit with similar legislation, and New Jersey is pending a similar law.

Another gloomy note about the electric car maker – Barclays noted that Tesla’s second quarter deliveries were not meeting expectations. Barclays also reported that after soft sales reads, Tesla has decided to pursue entering the China market.

As of closing today, Tesla stock prices are at lowest they’ve ever been this session.

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  • Jim5437532

    Another shamefully dishonest & ignorant article shilling for Tesla.

    The driver of the stolen Tesla that crashed, split in half, bursts into an inferno & exploded; allegedly has died 2 times. Allegedly he died the on July 4 when he stole and crashed the vehicle. Emergency responders resuscitated him.. Then he died again on July 7. Yet Tesla fan boys have lied & hyped the Tesla crash as nonfatal and keep hyping the Tesla as safe. Photos seem to suggest that the Tesla driver’s steering wheel airbag may have not deployed.

    Years ago safety advocates warned that lithium batteries were flammable, explosive & could emit toxic fumes; yet Tesla fan boys hyped the Tesla batteries as being safe. Tesla’s have so many fires that they are nicknamed toasters..

    Recently in Palmdale, a Tesla and its driver killed three people & set their car on fire; yet Tesla fan boys are hyping the crash as an example that the Tesla is safe..

    Recently another Tesla crashed in West Hollywood, broke in half, bursts into an inferno, exploded, sent flaming shrapnel through the neighborhood, & spewed toxic fumes killing the Tesla driver; yet Tesla fan boys hype the Tesla as being safe..

    Tesla’s poorly designed charge connectors have overheated, melted & burned., Poor manufacturing & poor quality control contributed to the problems. A fire department ruled that a Tesla charger was a possible source of a garage fire in California. Yet Tesla fan boys hype the Tesla as being safe & try to scapegoat the problems on wall outlets and house wiring.

    The software update that Tesla fan boys hyped as a “fix” for the universal mobile charger fire hazards, didn’t stop the UMCs from overheating, melting & burning.

    The recalled adapter, that Tesla fan boys hyped as not being a recall, still has not completely solved the problems.. There still has been UMCs that have been overheating and melting. Yet Tesla fan boys are hyping it as safe..

    Most modern light poles are supposed to be breakaway to reduce the amount of damage & injury during a crash. The fact that the Tesla was ripped in half, suggests that Tesla has a structural weakness..

    How was the car stolen? Was Tesla complacent, did they leave “keys” where they easily could be stolen?. Has Tesla skimped on safety by not keeping the “keys” in a lock box? Did the thieves exploit a security vulnerability in the Tesla model S. designs and/or in Tesla’s lax procedures/policies?.

    The high-speed Tesla stolen car chase put public safety at risk, was the high-speed chase really necessary? Wasn’t GPS tracking activated in the car? If so; shouldn’t have Tesla & law enforcement cooperated to intercept the stolen car instead of having a high-speed police chase?

    If safety really was a top priority for Tesla, shouldn’t Tesla have a remote shutdown feature in case a Tesla is stolen and/or involved in a high-speed chase? A remote shutdown command, could disable the drive train, & apply the parking brakes when the vehicle comes to a stop..

    Allegedly Tesla has secret service bulletins on safety issues like faulty brakes., If safety really was a top priority for Tesla, shouldn’t Tesla be transparent?. Shouldn’t service bulletins, especially ones that are related to safety, be readily available to independent service shops, educators, owners, customers, prospective buyers & the general public?

    Tesla lithium drive batteries more easily catch fire & explode after being punctured, then gasoline tanks.. The Tesla is much like a Ford Pinto, yet Tesla is hyped as being safe. When only about 30,000 Tesla’s were made, three of them caught on fire and/or exploded from being in accidents or only running over road debris.. When only 30,000 Ford Pintos were made how many of them have caught fire and/or exploded from being in accidents or running over road debris? In some respects the Tesla seems to be more dangerous than the Ford Pinto. How come Tesla is given favorable treatment?

    Teslas have been suddenly shutting off leaving drivers and passengers dangerously stranded in traffic; much like GM’s ignition switch problems; yet Tesla is hyped as being safe.. How come Tesla is given favorable treatment?.

    There was a Tesla related fire in a garage in Toronto.. Allegedly the source of the fire was the Tesla. Is the fire department’s investigation done?. If so, how come the findings aren’t widely known?. The government & Tesla were investigating the fire. How come more detailed facts & results seemingly haven’t been disclosed yet? Is there a cover-up? Allegedly the Tesla wasn’t even charging, so does Tesla have some other design flaw that is a fire hazard?

    It looks like the steering wheel airbag didn’t deploy in the first reported Tesla crash in China.

    I think Tesla fan boys are being less than honest when they hype Tesla safety.. It is sickening to see Tesla fan boys exploiting tragedies to shill for Tesla by spamming lies & hyping Tesla safety.

    • Banquos Ghost

      ….I was from the town where over 100 years ago the FIRST automobiles were manufactured…..that ran on STEAM !!!!! People were horribly injured by boiler accidents and other maladies. Did that stop the march toward progress ???…..NO!!!! Americans have ALWAYS had the COURAGE to step into the future, despite the risks…..we are NOT milquetoast cowards……complacent SHEEPLE, cowering in FEAR….waiting to be TOLD what to do !!!! Elon Musk faces many enemies in his effort to change the world : industrial saboteurs from the OIL industry…..maybe the same CIA STOOGES who are said to have taken out JFK….HAH !! Our own GOVERNMENT is afraid of him, because of the heavy involvement of being OWNERS of the loser and backwards General Motors….hence, MORE secret agents in the MEDIA and from the NSA conniving to ruin Tesla and to turn it into another TUCKER Motors !!!
      …..In case anyone hasn’t NOTICED…..the name TESLA itself, is a TRIBUTE to the man who had the GUTS to GO FORWARD with his invention….AC POWER…DESPITE the fact that it was indeed DANGEROUS !!! Despite thousands of horribly burned victims and electrocuted people in the last 100 years, Edisons “safe” direct current was ABANDONED as the STANDARD form of electricity…it was no where NEAR the efficiency of AC,multiphase power. As Bill O’Reilly himself has done…..I TOO endorse the Tesla car….despite its current problems. Electric cars are just BEGINNING to develop their technology….super conductive motors paired with Bloom Energy boxes SHOULD be ANOTHER car technology being developed…..but, it WON’T….because Colin Powell sits on the board of Bloom Energy, and is keeping the technology for the MILITARY, only !!! HYDROGEN fuel cells are being made and used by pioneering inventors AND several large companies….would you also TREMBLE in fear about THAT…as your cortex fixates on the images of the burning HINDENBURG ???!!!

    • RealConserns02

      How much were you paid? Just asking…

    • JackB125

      @Jim5437532, Just so you know…

      li·bel
      /ˈlībəl/
      noun

      1. LAW
      a published false statement that is damaging to a person’s reputation; a written defamation.

      synonyms:defamation, defamation of character, character assassination, calumny, misrepresentation,scandalmongering;

      • vladimirpinchaloafsky

        Hey dummy, truth is an absolute defense.

        • Paul Peanick

          You cover that short yet?

          • vladimirpinchaloafsky

            @Paul Peanick…..no way? That’s not your real name? How did you survive jr high?

    • ExtremeKahuna

      HA!
      Moron!

    • sranger

      And yet is is still safer that almost any ICE car on the road at any price….

      This little fact has to burn deeply in you Tesla haters and Paid Professional Liers…

  • joeinslw

    You know when the Ford Pinto was exploding on scene killing people left and right (I mean wrong) nobody was going crazy like they are now with this Tesla Model S. The position of the Pinto gas tank in the rear of the car was more explosive than the batteries in rear end collisions than the Tesla, and yet nobody has heard nothing like this from the people who either fear battery operated cars (EV) or are afraid this technology will take their jobs because Tesla is the technology that everybody wants.
    Gasoline is old hat, Gasoline is dangerous, Gasoline is explosive, Electric driven cars are the right way to proceed into the future, and we shouldn’t fear it, it’s progress and we should embrace it, because this technology will help the population with lower costs, it helps the environment, or the planet because it’s cleaner, and the cars are more efficient, EV’s have no maintenance compared to ICE vehicles.

    • vladimirpinchaloafsky

      Guy is dead, died at the scene, revived briefly, died later at hospital.

  • sandy222

    Tesla has decided to pursue entering the China market.

    Huh?

    Complete nonsense!

    As of closing today, Tesla stock prices are at lowest they’ve ever been this session. ???

    Market is not even closed yet shares are up 9.3.

  • vladimirpinchaloafsky

    Driver died. Shoddy journalism. “Several injuring?” Any editors there?

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  • Andrew Rubidoux

    Crash kills a criminal at end of high speed chase. Why should anyone be concerned what happened to the car? Am I missing the point? Can somone please explain this to me because clearly I’m a simpleton and I don’t get it. No car is supposed to be designed to survive this, right?

    • Paul Peanick

      There aren’t many real life examples of a tesla in a crash. They need to research the dynamics of that. Simple enough.

  • Damnotagain

    Yell on did mention over valuations on some sectors. Isn’t tesla runnable at a 190x earnings. . Perfect short

    • JackB125

      Lot’s of folks have repeatedly lost quite a bit of money shorting Tesla over the last couple of years. Be sure to do your research carefully if you plan to initiate a short position. Also, if you can test drive the car, I highly recommend that you include that as part of your research. Always good to get first hand experience of the product before taking a financial position on the company.

      • Damnotagain

        I agree a nice car. I see BMW and Nissan taking some of that market share.

        • JackB125

          The more that I read about the EV market being just a tiny fraction of world auto market, the constrained Li-ion battery supply and upcoming energy storage requirements from the Utility industry, I’m coming to think that Tesla is likely to be production constrained one way or another for the next decade. Consequently, I think that I would characterise higher BMW, Daimler and Nissan EV sales more as increasing the EV market size overall rather than taking existing market from another player.

          Tesla does have a concerning demand problem right now, and that problem is too much demand. Long delivery times are likely to be increasingly frustrating to Tesla customers over the next several years. Furthermore, the introduction of the Model 3 is very likely to significantly exacerbate this problem. Perhaps the Chinese customer that smashed the windshield of his new Model S because he had to wait so long for it to be delivered could be considered a case in point. Although, I hesitate to do that with a sample size of one.

          There has been a lot written about Tesla demand possibly already peaking in certain geographical markets. I don’t believe this to really be the case. Here is why… Right now, Tesla is in a delivery predicament. They are constantly having to decide which areas to starve in order to increase deliveries to another. They are obviously worried about the delivery frustration problem as well. In any case, when some folks that are following Tesla see that a “starved” area is having lower deliveries over even a short period of time, they misinterpret this as slacking demand.

          All that said, even though Tesla has very significant growth already baked into its stock price, the potential of that growth plus even more would keep me away from a short position at this time. The net is that, right now, both short and long positions on Tesla are high risk / high reward propositions.

          • Damnotagain

            Lol , Thank you , it paid well this week.

  • JimMcDade

    Tesla is the Hindenburg of the early 21st century. The company just quietly settled it’s first Lemon Law case out of court, paying off a disgruntled customer who was unhappy with his Model S garage queen. Sitting on top of Tesla’s 6,800 toxic, pressurized firebombs (lithium-ion batteries) while zipping through traffic is not such a good idea. Cracking a single battery in the Tesla battery pack can rapidly lead to a thermal runaway and the spewing of a pressurized stream of hot, toxic gases. Unfortunately, most stock analyst do not have much training in either chemistry or physics.

    Lithium-ion arrays as large as those built into Teslas are both bad science and bad engineering. One report claims that a Tesla fire can also cause the driver and passengers to be locked inside the vehicle as it burns, and while I can’t confirm that report, I do not that a single battery short can completely shut down a Tesla almost instantaneously The almost child-like enthusiasm for these all-battery cars is bound to cause a lot of embarrassment and apologies from people who recommend buying Tesla stock.

    Tesla’s are only a tiny percentage of the vehicles on the road at this point, so the reported domestic and foreign Tesla fire incidents are significant. If Tesla’s become prolific on our highways, the volume of fires that will occur- from accidents or while Teslas are just sitting in a garage- will quickly lead to a powerful wave of negative reaction that will almost certainly lead to the end of the brand. Tesla is an impressive, but potentiallyvery dangerous status symbol and it is not really so safe and practical as the Tesla fan boys claim.

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