Tesla Motors Inc (TSLA): Why The Word “Recall” Should be Recalled

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Tesla Motors Inc (NASDAQ:TSLA) has once again proved that its technology is way too advanced than even some of the largest automakers. The National Highway Traffic Safety Administration (NHTSA) today announced two crucial recalls, one for General Motors Company (NYSE:GM) and another for Tesla Motors Inc (NASDAQ:TSLA). In both cases, the problem is related to vehicles catching fire. NHTSA said the issue with General Motors Company (NYSE:GM)’ trucks is that they can overheat and catch fire if left idling. So far, eight such fires have been reported. In case of Elon Musk’s company, an overheating charger plug might have caused a fire in a garage.

Tesla more concerned about its customers than GM?

Both companies can address the issue with software updates. The problems facing Tesla Motors Inc (NASDAQ:TSLA) are common for a startup. But the company used over-the-air software updates to fix the problem. It didn’t have to recall even a single car. The software identifies charging glitches and reduces charging rates to avoid overheating. About 30,000 Model S cars across the nation have immediately been fixed.

Even after fixing the problem, Tesla Motors Inc (NASDAQ:TSLA) said it will mail the Model S owners a new charger plug with a thermal fuse, which will act as another safety layer.  In contrast, owners of more than 370,000 GMC Sierra and Chevrolet Silverado pickups have to squeeze in time to take their vehicles to a General Motors Company (NYSE:GM) dealer to have the software error fixed.

Tesla CEO says it was not a recall

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk argued that the software fix for his company’s vehicles shouldn’t be called a recall at all. Musk tweeted that no vehicle was “physically recalled” in the real sense. And in this case, the word “recall” itself should be recalled. Tesla Motors Inc (NASDAQ:TSLA) has done over-the-air updates in the past as well. When three Model S cars caught fire a few months ago, Tesla Motors Inc (NASDAQ:TSLA) sent out updates to change suspension settings. It provided vehicles more clearance at high speeds. Since then, no Model S fire has been reported.

Tesla Motors Inc (NASDAQ:TSLA) shares surged 6.65% to $172 at the opening bell on Wednesday.

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