Tesla Motors Inc (NASDAQ:TSLA) has been enjoying envious accolades all around for its Model S. However, in the past week, the electronic vehicle maker has been involved in negative news, which according to a report from NPR has caused it to be “knocked off its pedestal.”
Fire incidents like Tesla Model S are not rare
“We’re a country that likes to put things up on pedestals and then tear them down from pedestals. We do that with people, I think we do that with things,” says Jack Nerad, an analyst with Kelley Blue Book.
Several analysts downgraded Tesla Motors Inc (NASDAQ:TSLA) after a video of a Model S catching fire went viral over the internet. Nerad feels that Tesla Motors Inc (NASDAQ:TSLA)’s case must not be seen on the same page with other car manufacturers and companies. The Model S catching fire is a dramatic video, but in 2011, there were 187,500 car fires, noted Nerad.
Additionally, the analyst said that there is news of a car catching fire almost every day, irrespective of the brand, but those stories do not make national or world news.
Every scenario test not possible
Tesla Motors Inc (NASDAQ:TSLA) said that the driver was not injured due to the early warning system integrated in the vehicle.
Jake Fisher, head of automotive testing for the nonprofit, notes that every single scenario for possible accidents cannot be tested. Fisher says that real-world testing of all scenarios will take thousands of hours.
“Tesla kind of gives an insight of … perhaps the kinds of cars that we’re going to be driving in 10 years or 15 years.”
Fisher said that the car in the video caught fire as it hit metal debris at full speed, but the question arises here is if the Model S may be more vulnerable to fire given its battery packs are fitted along the bottom of the car.