Tesla Motors Inc (TSLA) Not To Face Investigation After Fiery Wreck

Tesla Motors Inc (TSLA) Not To Face Investigation After Fiery Wreck
Blomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) won’t be subjected to an investigation by the National Highway Traffic Safety Administration, according to a statement made by the agency in reference to a fiery crash which happened about a month ago.

Tesla Motors Inc (TSLA) Not To Face Investigation After Fiery Wreck

Tesla’s Model S won’t see a recall after crash

Earlier this month while the government was in shutdown, regulators were not investigating the Model S crash, which happened after the vehicle collided with a metal object. Later it was revealed that the metal object appeared to have been something which fell off a tractor trailer. The crash sparked a fire, but the driver of the vehicle was not injured and the flames never got into the passenger compartment of the vehicle.

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The NHTSA did conduct a review of the data, however, and it found that the crash did not result in the discovery of any problems with the safety of the Model S. If the agency had decided to investigate, it could have decided to issue a recall for Tesla Motors Inc (NASDAQ:TSLA)’s Model S.

Tesla’s vehicle surpasses other EVs in safety

The fiery crash was the first fire reported in a Model S. According to Bloomberg’s Angela Greiling Keane and Alan Ohnsman, regulators did investigate fiery crashes involving General Motors Company (NYSE:GM)’s Chevy Volt and the Karma, a vehicle made by the now-defunct Fisker Automotive. Both of those investigations resulted in the NHTSA issuing recalls on the vehicles.

California not changing ZEV credits this time

Also this week, Tesla Motors Inc (NASDAQ:TSLA) will benefit from a decision made in California. The state’s Air Resources Board is delaying a decision to change its Zero-Emission Vehicle program. The program would have slashed the number of credits Tesla earnings from selling its vehicles in California. The board is determining whether the automaker’s new battery swap technology meets its requirements for fast refueling. Currently Tesla receives a max of seven of those credits. If the board reduces the number of credits the company earns per vehicle, that number could drop to four.

About 12% of Tesla Motors Inc (NASDAQ:TSLA)’s revenue during the first six months of this year came from the sale of these credits.

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