The stock price of Tesla Motors Inc (NASDAQ:TSLA) surged 7% to as much as $154.97 per share after the National Highway Traffic Safety Administration (NHTSA) reaffirmed the 5-star safety rating for the Model S vehicle and in all subcategories for model year 2014.
The NHTSA’s reaffirmation of the electric car manufacturer’s 5-star rating is a good indicator that Tesla Motors Inc (NASDAQ:TSLA) has the safest vehicle in the United States. The agency has not yet released any result regarding its investigation of the recent Model S vehicle fire incidents.
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The German Motor Transport Authority, Kraftfahrt-Bundesamt (KBA) concluded its investigation regarding the Model S fire incidents and found no manufacturer-related defects or need further action.
In a statement yesterday, Tesla Motors Inc (NASDAQ:TSLA) said, “It is worth noting that a Tesla vehicle is over five times less likely to experience a fire than the average gasoline car and that there have been zero serious injuries or deaths for any reason ever, fire or otherwise, in a Model S. Over the course of more than 100 million miles driven in almost every possible terrain, weather and crash conditions; the Tesla Model S has consistently protected its driver and passengers, achieving the best safety track record of any car on the road.”
The stock price of Tesla Motors Inc (NASDAQ:TSLA) suffered steep declines when three Model S vehicles caught on fire last October and November. The incidents raised concerns among investors regarding the safety of the battery of the electric car.
Elon Musk stood by safety of Model S
Amid the concerns regarding the safety of the battery of the Model S, Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk repeatedly emphasized that the electric car is safer compared with other vehicles powered by gasoline.
Musk explained, “Since the Model S went into production last year, there have been more than a quarter million gasoline car fires in the United States alone, resulting in over 400 deaths and approximately 1,200 serious injuries (extrapolating 2012 NFPA data). However, the three Model S fires, which only occurred after very high-speed collisions and caused no serious injuries or deaths, received more national headlines than all 250,000+ gasoline fires combined.”
The electric car manufacturer is confident that its Model S vehicle “best safety track record of any car on the road.”
Over the past 52-week range, the stock price of Tesla Motors Inc (NASDAQ:TSLA) climbed from $32.11 to its highest level at $194.50 a share.