Tesla has chosen to take the high-profile approach to public relations. When things go smoothly, that is highly effective and, best of all, cheap because it implies a lot of free press coverage. Remember when Consumer Reports said that Tesla’s Model S sedan was its top scoring car back in May? Neither did we.
Karl Brauer, a senior analyst at Kelley Blue Book, puts it succinctly: “For a company with a stock price based as much or more on image than financials, those recurring headlines are highly damaging.” Three fires in six weeks, regardless of the cause, certainly gives shareholders something to think about, even if Tesla’s target buyers cannot wait to get behind the wheel of their very own cars.
The National Highway Traffic Safety Administration (NHTSA) has been tracking fires in electric vehicles because the agency is concerned that the lithium-ion batteries may be especially prone to catching fire. So far, both previous incidents involving the Model S have been caused by accidents, and no one was hurt in either crash.
ALSO READ: Ten Brands That Will Disappear in 2014
Tesla’s stock price was down another 6.5% Thursday to $141.55 in the noon hour, after dropping about 15% Wednesday after failing to dazzle investors with its third-quarter earnings report.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
