Submitted by Curt Renz on Mon, 2013-11-11 10:19
Last week the weaker (short-term) Tesla Motors shareholders sold in panic as they feared the worst case scenarios. Institutional money managers were expecting that all too human reaction and now appear to be accumulating shares.
The conference call last Tuesday appeared low keyed and not really bad. The need for batteries was misinterpreted as a near-term Model S problem, but Musk later clarified that his concern was for enough batteries for eventual mass production of Gen III. A new battery factory should solve that.
Fires to cars from an upstart company draw media attention, but upon closer look it becomes obvious that the occupants were kept amazingly safe and that the fires are statistically rare. Nevertheless, I expect the company to come up with a cost effective solution that further satisfies consumers and the NHTSA. In the long run this past week will essentially be forgotten, as Tesla Motors continues to execute its plan to dominate the automobile industry.