Partial Recall

I didn't know where and found Tesla recalls about 800 Model S vehicles - MarketWatch thanks to Yahoo Finance.

I later found Partial Recall | Blog | Tesla Motors, thanks to another thread.

LST said:

On the TM site Elon just published a partial recall of Model S produced between May 10 and June 8. Whilst this is bad news for Tesla, but not dangerous IMO, this will help longs to reinvest at lower prices. Any idea how much setback that kind of info can cause on a highly volatile stock ?

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Seems like a minor issue that affects less than a month of production. There is no real reason for this to affect the stock price, though I admit the stock is volatile. I'd be shocked if there were a major reaction. It's just a bracket.

LST said:

On the TM site Elon just published a partial recall of Model S produced between May 10 and June 8. Whilst this is bad news for Tesla, but not dangerous IMO, this will help longs to reinvest at lower prices. Any idea how much setback that kind of info can cause on a highly volatile stock ?

Click to expand...

800 cars times let's say $500 each to fix == $400'000. (Doesn't seem like new parts, and work is performed in a few hours).

Or the profit from about 1/2 a days worth of production.

And if the stockholders have to pay for it, it's about a 1/3rd of a cent on the stock price.


If the market is smart it will be a non-event. Of course there has been no indication of the market being smart so far...

So there will likely be a gap down pre-market, which will present a buying opportunity, followed by a gap fill during market hours once sanity sits back in.

AnOutsider said:

Smart to announce it before the swap event

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yeah I agree. He is smart kind of slip the new in between the good one. Right now, mart is not reacting to this new at all (as if they don't know or care less compare to battery swapping thing)

Their approach is getting some positive press.

wondering that approach is not going to get any revenue short term or long term (way long here)

gameon said:

yeah I agree. He is smart kind of slip the new in between the good one. Right now, mart is not reacting to this new at all (as if they don't know or care less compare to battery swapping thing)

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I think the market is a bit - happy to see this level of service and that's a rather small thing they're fixing on a limited number of cars.

Shows the process is working like it should be.
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Once again, Elon and TM stand above the rest. Contrast their approach with Chrysler's hesitancy to reall the Cherokee in the face of widespread catastrophic failure.

It’s a very proactive approach, yes, but Tesla can afford to do that right now because they are such a small-volume producer. I wonder, as Tesla grows, how it would handle a broader recall, especially without a big network of dealers. Will Tesla be able to give such attentive service?


Also, I was puzzled by this statement in his explanation: “we discovered that, due to body side alignment adjustments in the factory, the bonded section of the joint was compromised and the welded section of the joint was weakened in some cars.” I understand these cars are practically handmade, but that doesn't sound like a well-engineered body — if you have to make adjustments to the alignment that are significant enough to compromise a welded joint, you've got problems. I would love a more detailed explanation, as well as visual evidence of what’s going wrong in the manufacturing process.

http://www.latimes.com/business/autos/la-fi-hy-tesla-models-recall-20130619,0,1038319.story

Tesla will recall about 1,228 of its expensive Model S because of a problem with a seat latch, Elon Musk, the automaker’s chief executive said in a statement.

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deonb said:

800 cars times let's say $500 each to fix == $400'000. (Doesn't seem like new parts, and work is performed in a few hours).

Or the profit from about 1/2 a days worth of production.

And if the stockholders have to pay for it, it's about a 1/3rd of a cent on the stock price.


If the market is smart it will be a non-event. Of course there has been no indication of the market being smart so far...

So there will likely be a gap down pre-market, which will present a buying opportunity, followed by a gap fill during market hours once sanity sits back in.

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Tesla investor guidance is that recall will cost about $150,000. Pretty insignificant in dollar terms. Keep our fingers crossed that the Media spins this positively as a story of Tesla's great response and that it doesn't have any negative brand impact.

deonb said:

So there will likely be a gap down pre-market, which will present a buying opportunity, followed by a gap fill during market hours once sanity sits back in.

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deonb, smart call. You nailed it.

gameon said:

Also, I was puzzled by this statement in his explanation: “we discovered that, due to body side alignment adjustments in the factory, the bonded section of the joint was compromised and the welded section of the joint was weakened in some cars.” I understand these cars are practically handmade, but that doesn't sound like a well-engineered body — if you have to make adjustments to the alignment that are significant enough to compromise a welded joint, you've got problems. I would love a more detailed explanation, as well as visual evidence of what’s going wrong in the manufacturing process.

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I don't have any details but the below are the two associated documents I can find so far from safercar.gov/NHTSA. The NHTSA campaign # is 13V249000.

http://www-odi.nhtsa.dot.gov/acms/cs/jaxrs/download/doc/UCM440427/RCAK-13V249-2732.PDF
http://www-odi.nhtsa.dot.gov/acms/cs/jaxrs/download/doc/UCM440239/RCDNN-13V249-4963.pdf

The Difference

What's the difference between Tesla Motors and GM?

at Tesla Motors, avoiding recalls is a design objective.
at GM, it is an after sales practice.

:wink:

VolkerP said:

What's the difference between Tesla Motors and GM?

at Tesla Motors, avoiding recalls is a design objective.
at GM, it is an after sales practice.

:wink:

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Agreed! This is a voluntary recall by Tesla as opposed to the typical GM recall where GM tries to hide the problem and then deny it's a problem when the .gov insists on a fix.

Geez you scared me! I thought it was a new recall! I had strategies for short-term trading going through my head until I saw the date.

Don't bump like that!!

pz1975 said:

Geez you scared me! I thought it was a new recall! I had strategies for short-term trading going through my head until I saw the date.

Don't bump like that!!

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I know, right? First i thought "oh,s**t, let's read on and see how bad is it". Then I kept reading and I was like "phew, it happened on the 18th or 19th, we are already past it, so no worries"... it took me a couple of minutes to realize this was all in 2013... almost exactly a year ago. LOL.