No Model S recall, Tesla CEO insists

AP, DETROIT, Michigan

Thu, Nov 14, 2013 - Page 15

Tesla Motors CEO Elon Musk says the company “definitely” will not recall its Model S electric car, despite three vehicle fires in the past six weeks.

“The headlines are extremely misleading. If fire risk is your concern, you would have a great deal of difficulty being in any better car than the Model S,” Musk said.

There is one fire for every 1,300 gas-powered cars on US roads, and for the Model S, that is closer to one in 8,000, Musk said during an interview on Tuesday at the New York Times’ DealBook conference. He underscored that none of the drivers in the three cases was injured.

“There’s definitely not going to be a recall. There’s no reason for a recall, I believe,” he said.

Rumors of a possible recall sent Tesla shares down 5 percent on Tuesday to close at US$137.80. They rose 2 percent in after-hours trading after Musk spoke.

The stock is down by nearly a third since the first fire was reported on Oct. 2.

In that case, the car hit a large metal object on a state highway near Seattle. In the second case, in Mexico, a Model S burned after a high-speed crash. Last week, a Model S caught on fire near Smyrna, Tennessee, after its driver struck a trailer hitch in the road.

Musk, who described himself as “somewhat of a perfectionist,” said Tesla would recall the Model S immediately if it thought the car had a safety problem.

Ultimately, that decision might not be left to Tesla. The government could decide to recommend a recall of the Model S, and could take the company to court if it refuses.

The National Highway Traffic Safety Administration said on late Tuesday that it is in contact with Tesla and authorities in Tennessee to decide whether it needs to take further action.