Tesla shares rise after CEO says no recall
There's no reason to do one, the automaker's CEO says. He played down 3 recent reports of fires in the Model S.
"There's definitely not gonna be a recall," he told the network. "There's no reason for a recall." Shares of the stock rose more than 1% Wednesday to $139.60.
Musk said the perception is that Tesla vehicles have a greater propensity to catch fires than other cars. In actuality, however, he thinks that couldn't be further from the truth.
The average car model has one fire for every 1,300 cars on the road. With Tesla, there
has been only one fire for every 8,000 cars.
"The headlines are extremely misleading," said Musk. "We've never had a serious injury or death in any of our cars. Maybe there is a car that is as safe as a Model S, but there is certainly not a car that is safer, because you'd have to have less than zero [deaths]."
How do the actual drivers of the Tesla vehicles that caught fire feel about the Model S?
According to Musk, they want a new one to replace the one that was destroyed.
"It's the best car they've ever driven," Musk said of the response he has received. "In all three cases they think they were safe from serious harm. If they had been in another car they probably would have been seriously injured."
"In (the) case of the second car," he added, "it was four times the kinetic energy that a car is supposed to be survivable at."
That accident was a multi-part crash involving an impact with a concrete wall, a 7-foot pole and a tree. The driver and passenger got out of the car and walked away. Afterwards there was a small fire.
Musk joked that this led the media to cry, "Fire!"
He wryly compared this to the Titanic, saying that if the ship had smashed through two icebergs, crashed into a third and all the passengers got off safely and bought another ticket to ride the Titanic again, the headlines would have read, "Titanic catches fire."
"I'm sort of a perfectionist," Musk added. "Safety is our No. 1 priority. I drive it. My kids are in it, my friends are in it."
Musk said that if there was even the slightest chance that it was dangerous, he would issue a recall.
In fact, the company did just that earlier this year -- when Tesla encountered a possible issue with a seat-belt bracket.
With regard to the supposed comments made by actor George Clooney, Musk said that he complained a long time ago about a Tesla roadster from 2008, not the Model S.
"That'd be like saying my iPhone 1 in 2007 had a bug," Musk quipped.
Read more from Benzinga
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Longtime market bull Jeremy Siegel says investors could realize the market is behind the curve on interest rates.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.