Cars and Drivers

How Long Can Tesla Dodge Safety Issues?

Thinkstock

A recent report about an accident that involved a Tesla vehicle spelled bad news for the company. The report indicated that its car batteries may not be safe.

The National Transportation Highway Safety Board’s experts issued a report on a crash of a 2014 Model S in Fort Lauderdale on May 8 that involved a driver who lost control of the car. The report’s authors wrote:

The Fort Lauderdale Fire and Rescue Department arrived at the crash scene and found the Tesla fully engulfed in flames. They extinguished the vehicle fire using 200–300 gallons of water and foam. Small portions of the lithium-ion high-voltage battery had separated from the vehicle, and—though there was no visible fire—they applied water and foam to the debris. During the loading of the car for removal from the scene, the battery reignited and was quickly extinguished. Upon arrival at the storage yard, the battery reignited again. A local fire department responded to the storage yard and extinguished the fire.

One fire is bad. Three fires are three too many.

The major criticisms of Tesla vehicles are that their autopilots are not advanced enough to be safe for drivers who surrender control of their cars and that the type of batteries Tesla uses are unstable. While the evidence of these is thin because it is based on very few accidents, regulators and some consumers are anxious nevertheless.

Tesla Inc. (NASDAQ: TSLA) has a series of problems that are unrelated to fires, but it does add one more burden as the company struggles with its future. Investors worry it will run out of cash this year. Analysts worry production of its mass-market Model 3 will be to slow to satisfy consumer demand and reach key milestones set by founder and CEO Elon Musk.

In 2015, Consumer Reports gave the Tesla Model S a score of 103 on a scale with a high point of 100. It lauded the car’s safety features. But that was three years ago before Teslas started to have serious accidents. These accidents may dampen consumer demand at a time Tesla needs it.

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

1 https://www.fdic.gov/national-rates-and-rate-caps

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.