Tesla shares fall; Elon Musk says Germany is “top focus”

Tesla Motors saw its share price fall further Wednesday amid news that the National Highway Traffic Safety Administration may investigate the Model S fire and a dour research note from Merrill Lynch.

On October 1, a Model S in Washington State caught on fire after the driver ran over a sharp metal object on the freeway which punctured the battery pack. The driver was not injured, and Tesla CEO Elon Musk wrote extensively about the incident in a blog post.

Now that the federal government is up and running again, it appears that NHTSA is looking at the incident more closely. Though an official investigation has not begun, the agency is gathering information to determine if agency action is warranted.

Bank of America analyst John Lavallo II released a report Wednesday that called Tesla’s shares “vastly overvalued from a fundamental standpoint” amid the potential NHTSA investigation and concerns about Tesla’s ability to win over consumers in Europe.

Tesla was down to $162 in mid-day trading. The Palo Alto-based company reports its third quarter earnings Nov. 5.

Meanwhile, CEO Elon Musk is in Germany, where he said that “right now, Germany is our top focus in the world.” He also calls hydrogen fuel cell cars “bull—-.”

Tesla Motors CEO Elon Musk in Germany. Image via YouTube.

 

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  • Homer

    Overpriced cars don’t last.

    • Mike H

      @Homer: What do you mean? The car itself will not last or the company building the car won’t last? I think there are many examples that refute either case.

      • Homer

        Both.

    • Craig Anderson

      You mean like a high priced MBZ or a Porsche or a BMW?

  • Patrick Donohue

    Musk always seems to have some kind of rabbit in his hat. I feel sorry for the shorts with November contracts.

  • Andrew Bennett

    The car was hit by a ufo lazer beam gun

  • Voiceinthewind

    The car is a joke and over hyped, I hope no one on this blog bought stock in it, it is sort of like Red Hat was, a Jewish media blitz with all the hype you can handle and then some.

    • Johnny Le

      Please explain why the car is a joke.

    • Ryan

      I always thought that some commenters say things so stupid they must be getting paid to say it. Then the NYT published an article about companies that actually hire people to make ridiculous posts. I’m assuming you are being paid by the oil companies in a futile attempt to hold on to a futureless business model. Electric cars, renewable energy, that’s the future and no amount of propaganda is going to hold back price parity.

    • Davey Lee

      It is a joke..and all the sheeps that follow it. Cut the government hand out and no one will buy this car.

  • jeffsongster

    The current price is a bit fluffy… but electric cars are hitting their stride… Here in the SF Bay Area they are very practical especially in Silicon Valley and the SF Peninsula are especially well set. I recently drove my new LEAF to the National Plug In day celebration and found 4 DC quick chargers (0 to 80% in 30 mins) along the hwy 680 route I took. The trip was no problem. As for his comment on Fuel Cells… He’s right… the best fuel cell is just a quicker recharged battery. Fuel Cell vehicles are usually EVs also.

    • Homer

      Hitting their stride? 4% of all sales?

  • Voiceinthewind

    Its sort of like Starbuck’s coffee if you get my drift.

  • b9

    Meanwhile, in other news, about 531 gas fueled cars caught fire and burned today. This is approximately the same number that burned yesterday and the day before and the day before that. Experts (or at least statisticians) predict that another 531 will catch fire tomorrow and the day after and every day to the end of the year. They also predict that very few of these fires will be reported in the new media despite the fact that approximately 6 people a week are killed as a direct result of those fires. Source : …usfa.fema…v13i11.pdf (data from 2008 to 2010)

    • photolobos

      What you say is true but the question is why are Tesla cars catching fire and what can be done to minimize the chance. Tesla shouldn’t be given a “pass” just because its a neat car. All cars need to be made safer and Tesla is no exception.

  • Voiceinthewind

    I am all for electric or any alternative energy for power, however that being said, I am against inflated and overpriced cars or any other price gouging and over hyping of someone or something as being the next best mouse trap when it is nothing other than the same old mousetrap.

 
 
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