by Christopher Freeburn | January 10, 2014 4:07 pm
Tesla Motors (TSLA) CEO Elon Musk told Bloomberg that the luxury electric car maker planned to send out new charging adapters after a small number of owners reported problems with the original adapters.
About half a dozen incidents have been reported to regulators or posted online. Musk called the incidents, in which some adapters smoked while charging or had their wall prongs melt, were “very rare events” but said that wiring errors could occur. Tesla will mail the new adapters — which are designed to prevent overheating by turning off — to owners later this month.
Tesla said that a November fire in a California garage in which a Model S was charging could not be linked to the charger. The vehicle wasn’t damaged and fire officials could not determine if the fire was caused by the charger or a wiring problem in the garage.
The replacement of the charging adapters comes as Tesla vehicles are under investigation by regulators over three fires involving its Model S car.
TSLA stock was relatively unaffected by reports of the first fire in October. But reports of subsequent fires caused TSLA stock to tumble.
Prior to the reported fires, TSLA stock was approaching $200 share. In their wake, TSLA stock fell back to around $120 a share. TSLA stock has since climbed back to above $140 a share. Rumors have also recently circulated that Tesla could be an acquisition target.
TSLA stock dropped more than 1% in Friday trading.
Source URL: http://investorplace.com/2014/01/tsla-stock-tesla-upgrade-charger-adapters-prevent-garage-fires/
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