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Tesla Motors settles back on adapter announcement

  • Tesla Motors (TSLA +4.4%) says it will recall up to 29K Model S vehicles due to an issue with the power adapter.
  • The news is cutting into the momentum built up from the automaker's disclosure from just minutes earlier that it delivered 6.9K vehicles in Q4 vs. guidance for 6K deliveries.
  • UPDATED: The company makes clear that customers are being mailed a new adapter, there is no recall of automobiles in the classic sense.
Comments (40)
  • Nigel D'Souza
    , contributor
    Comments (171) | Send Message
     
    Hmmm. Why is the stock not crashing on the news?
    14 Jan, 11:58 AM Reply Like
  • Rik1381
    , contributor
    Comments (1420) | Send Message
     
    Nigel, maybe because it's old news? Tesla announced it in a press release 4 days ago.
    http://bit.ly/1ktYOSc
    14 Jan, 12:07 PM Reply Like
  • Nigel D'Souza
    , contributor
    Comments (171) | Send Message
     
    Hold on. Is this just recall of the adapter chargers? Geezus. That's not a big deal.

     

    The article on SA states Tesla "will recall up to 29K Model S Vehicles"
    14 Jan, 12:12 PM Reply Like
  • flux8
    , contributor
    Comments (582) | Send Message
     
    Yah, it's only a "recall" in the technical sense. All they're doing is mailing replacement adapters to owners along with a software update. Agree, it's misleading, but hey it gave everyone a couple of days opportunity to scoop up some shares at a discount. :)
    14 Jan, 12:22 PM Reply Like
  • Rik1381
    , contributor
    Comments (1420) | Send Message
     
    Nigel. The Model S AC chargers are onboard, inside the car. There's no issue with the onboard chargers.

     

    Tesla's Model S Universal Mobil Connector is an EVSE, an external device that connects the Model S charging port to various types of wall outlets, using different adapters. Here's what it looks like
    http://bit.ly/1dNqrNa

     

    What Tesla is replacing is the NEMA 14-50 adapter that works with the UMC. A NEMA 14-50 runs @ 200-240V at up to 40A on a 50A circuit. It's the same type of 50A plug used for RVs. The replacement NEMA 14-50 adapter that Tesla is mailing out to owners will have thermal fuse that shuts down if the adapter overheats. This can happen if the wiring inside the wall plug or the adapter has a poor connection.

     

    Tesla already sent out an over-the-air update of the Model S firmware that will reduce charging rate if the charger detects fluctuations suggesting a bad connection somewhere in the circuit, which could be anywhere in the circuit including back at the electrical panel.

     

    I'm not sure why a part being mailed out to car owners and an OTA firmware update is considered a recall. The car does not need to be brought into a service center for repairs.
    14 Jan, 12:32 PM Reply Like
  • flux8
    , contributor
    Comments (582) | Send Message
     
    Personally, I think it's a pretty clever PR move. They issued a very low cost repair for something that was highly unlikely to be a real world problem. It draws everyone's attention when they hear TSLA issues a "recall". Everyone looks into it, realizes it's minor, and breathes a sigh of relief. It re-enforces TSLA as a company with 5 star customer service. VOILA. People pile back into the stock. See the price today?
    14 Jan, 01:24 PM Reply Like
  • Raster
    , contributor
    Comments (256) | Send Message
     
    Media reporting on this issue has been nothing short of malpractice.

     

    As others have said, it's an adapter for people that use a 14-50 socket (basically a wall oven or electric stove type plug.)

     

    I own one. But I don't use it. All my charging is done with public J1772 stations, Tesla superchargers, plugging into normal house outlets, or plugging into my cousin's dryer outlet when I visit.

     

    It's not a recall.
    14 Jan, 02:19 PM Reply Like
  • johnjakubowski
    , contributor
    Comments (170) | Send Message
     
    because every investor heard the word 'recall' and the shorts piled in. Then King Musk gets up there and says its really not a 'recall', but a software update ( uh huh ) and also ships out new parts. This is only the beginning.
    Clarity triggers short squeeze, now we watch TSLA drop like a lead balloon.
    14 Jan, 10:25 PM Reply Like
  • 3Pete
    , contributor
    Comments (7) | Send Message
     
    As long as tesla initiated the recall and not the motor safety people, I think this could turn out OK. Just like the last time they initiated a recall...
    14 Jan, 11:59 AM Reply Like
  • Esekla
    , contributor
    Comments (2292) | Send Message
     
    I found out about this last night, and commented on it here:

     

    http://seekingalpha.co...

     

    It's official, but not what it sounds like.
    14 Jan, 11:59 AM Reply Like
  • rambler1
    , contributor
    Comments (398) | Send Message
     
    The recall news was out before the delivery announcement. They also acknowledged the issue the other day.
    14 Jan, 12:04 PM Reply Like
  • Nigel D'Souza
    , contributor
    Comments (171) | Send Message
     
    Question to everyone. Why is the recall news not a big deal? Doesn't this place negative pressure on future sales? The recall is also an additional cost to Tesla.

     

    So, a voluntary recall is a-okay but a mandatory recall by the NHTSA is not?
    14 Jan, 12:06 PM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2070) | Send Message
     
    Recall = looking backward.

     

    Just sold 6,900 vehicles in Q4 = looking forward.

     

    Tesla could see $160 before week's end.
    14 Jan, 12:06 PM Reply Like
  • chopchop0
    , contributor
    Comments (3137) | Send Message
     
    saw that today :)
    14 Jan, 10:41 PM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2070) | Send Message
     
    They're recalling chargers - right? Not the whole vehicle. Why is this worded like this?
    14 Jan, 12:09 PM Reply Like
  • flux8
    , contributor
    Comments (582) | Send Message
     
    They're recalling the charging adapter. They're actually just mailing the new adapter to owners and providing a software update. I guess it's user-installable.
    14 Jan, 12:24 PM Reply Like
  • chickensevil
    , contributor
    Comments (639) | Send Message
     
    It is, I think they are also requiring the users to mail them back the "faulty" adapter. Which is really not faulty, they are just adding an extra detection level in the adapter.

     

    Think of it like, adding a circuit breaker. You don't "technically" need a circuit breaker, why do we have them? to prevent an accidental power overload causing a meltdown or fire.

     

    In this case they added a thermal fuse. If your line in the wall gets too hot because you or your electrician was terrible at wiring your house, then this provides an added level of safety. It's not Tesla's fault that you have terrible house wiring, but they are going to try to compensate all the same :)
    14 Jan, 03:31 PM Reply Like
  • Ecp54321
    , contributor
    Comments (182) | Send Message
     
    The timing of this supposed "recall" is obvious that it is from shorts trying to depress the stock price right when Tesla announced 6900!!!! Deliveries!!!!
    This was reported last week that Tesla is sending new adapters to its customers voluntarily to help prevent any possible overheating at the plugs from plugs which only happens if the plug in your garage or wherever was wired erroneously to begin with.
    14 Jan, 12:09 PM Reply Like
  • Ecp54321
    , contributor
    Comments (182) | Send Message
     
    There should be an investigation to the source of this press release as its clearly media propoganda by some big short(s) who got freaked out when the stock skyrocketed from going up $10 within minutes of their 6900 deliveries announcement.
    No worries though, analysts will be increasing their price targets very soon.
    14 Jan, 12:11 PM Reply Like
  • Frank Greenhalgh
    , contributor
    Comments (1272) | Send Message
     
    I think that the charger recall is different as all the 29,000 cars built do not apply.
    This probably is a problem with the car connector or the charger in the car.
    14 Jan, 12:17 PM Reply Like
  • Nigel D'Souza
    , contributor
    Comments (171) | Send Message
     
    What's the big deal about the 6.9K units for Q4. That's exactly in line with expectations.

     

    Tesla sold 6.6K units in Q3 with ASP of 91K. 6.9K units at 91K ASP = Q4 Rev of $629M

     

    This is slightly below the consensus forecast of $632M

     

    http://on.ft.com/1dNo4K6
    14 Jan, 12:18 PM Reply Like
  • Rik1381
    , contributor
    Comments (1420) | Send Message
     
    Q3 was 5500 Model S deliveries.
    Tesla's guidance for Q4 deliveries was "slightly under" 6000.
    6900 actual Q4 deliveries beats guidance.
    14 Jan, 12:43 PM Reply Like
  • Nigel D'Souza
    , contributor
    Comments (171) | Send Message
     
    RIght. Tesla beat management guidance but is exactly in line with analyst expectations. So the market should have priced Tesla based on analyst expectations not management guidance. In Q3, Tesla shares sold off sharply after slightly beating management guidance because it failed to meet analyst expectations.Now the reverse is occuring (i.e. fail to meet expectations but beat guidance) and shares rally??

     

    Makes absolutely zero sense unless market is expecting doubling of sales/service centers to result in substantially higher sales in 2014.
    14 Jan, 01:48 PM Reply Like
  • Rik1381
    , contributor
    Comments (1420) | Send Message
     
    Analysts expectations were gross exaggerated for Q3; turned out Tesla's guidance was far more accurate. Maybe the market learned to ignore analysts expectations re: Tesla?
    14 Jan, 02:22 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (4110) | Send Message
     
    Nigel, you are absolutely correct. Also, it was reiterated that Model X will only be in full production by Q1-Q2 2015, all of 2014 revenue will basically be for Model S.

     

    While the worldwide passenger car market is probably around 75 million cars for 2014, TSLA will therefore produce 40-50k units.

     

    Irrational market at work (similar to current valuations of TWTR, YELP, SCTY...)
    15 Jan, 01:20 AM Reply Like
  • Aaron.Rhodes
    , contributor
    Comments (225) | Send Message
     
    This came out of CNBC. Terrible journalism! 29000! That would be all the cars!? They are recalling the adapters not the cars. The cars have been fixed remotely.

     

    Always go to the source:

     

    http://1.usa.gov/1m0y9dZ
    14 Jan, 12:19 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    again "this is a car company with a PRIVATE SPACE PROGRAM." Ford better get moving...the Federal Government has bailed on General Motors for a reason...
    14 Jan, 08:48 PM Reply Like
  • Dan Fichana
    , contributor
    Comments (1796) | Send Message
     
    Poor journalism, they are sending out a power adapter with a fuse built in to ensure that the Model S charging unit can not be blamed for future occurances.

     

    They are not recalling the vehicle.

     

    BTW, you know that fire the involved the charger location or wall outlet. Apparently there was no permit or inspection for that outlet as per green car reports. So you have an electrcian who did not do the right thing (get a permit) and you have Tesla sending out something so they can't be blamed for someone else, out of their control doing something wrong.
    14 Jan, 12:35 PM Reply Like
  • TikiManProd
    , contributor
    Comments (117) | Send Message
     
    Not to mention the fact that the outlet in question (at the home in Irvine) was never officially inspected by the city, and the FACT that the electrical who installed the 240 volt NEMA outlet never pulled permits for the installation, kind of explains everything.

     

    If anything, Tesla is just adding protection to Model S owners whom hire unlicensed electricians that don’t know what they are doing.
    14 Jan, 12:46 PM Reply Like
  • TikiManProd
    , contributor
    Comments (117) | Send Message
     
    So in a nutshell, they are just mailing out new power-adaptors to be safe, and have already pushed a firmware upgrade to all owners (FAR from what I would call a major recall, or … (cough) opposed to what GM will need to do to 370,000 pickup trucks with FAR more dangerous problems … http://bit.ly/1dNrnkL)
    14 Jan, 12:38 PM Reply Like
  • azgog
    , contributor
    Comments (157) | Send Message
     
    Tesla can control quality at the Superchargers but not at 3rd party or customer's wiring.

     

    Love the execution, both in car production and rapid response to possible problems.
    14 Jan, 12:44 PM Reply Like
  • jjb94941
    , contributor
    Comment (1) | Send Message
     
    Because it doesn't entail physical recall of the cars. From the recall notice:

     

    "Tesla will notify owners and provide an "over-the-air" software update. Some owners have already received this update. This update allows the Model S on board charging system to detect any unexpected fluctuations in the input power or higher resistance connections to the vehicle. If detected, the onboard charging system will automatically reduce the charging current by 25%"
    14 Jan, 01:10 PM Reply Like
  • Kalud
    , contributor
    Comments (42) | Send Message
     
    Its 29k charger adapter, not cars. Not even charger, just the end adapter.

     

    This piece: http://bit.ly/1m0Mo2A
    14 Jan, 01:20 PM Reply Like
  • Kalud
    , contributor
    Comments (42) | Send Message
     
    29,222 NEMA 14-50 adapter units have been delivered to Tesla to date.

     

    Adapters not cars, they are mailing out the 45$ adapter with an added internal thermal fuse.

     

    http://1.usa.gov/1m0y9dZ
    14 Jan, 01:25 PM Reply Like
  • Ampfreak
    , contributor
    Comments (3) | Send Message
     
    They are not recalling cars, they are not even recalling chargers, they are sending new charging adapters with a thermal fuse in it to prevent overheating caused by bad electrical house installations. It is the wall socket generating the heat due to weak conductors in the house installation.
    14 Jan, 01:26 PM Reply Like
  • mstar991
    , contributor
    Comments (20) | Send Message
     
    agree, this recall comment was very confusing ... insta sold my shares and bought back higher price now
    14 Jan, 01:50 PM Reply Like
  • Ad van der Meer
    , contributor
    Comments (101) | Send Message
     
    ...and I am pretty sure the number of "recalled cars" is much lower as it excludes the cars delivered in Europe which is more than 3k cars.
    14 Jan, 02:27 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (3790) | Send Message
     
    Looking to short this bad boy again once the momentum begins to wane. This is a buy the dip, sell the rip kind of stock.
    14 Jan, 08:12 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    you do that "SA Contributor Moron Number XXXXXXX"...not even the Federal Government can keep up with this operation.
    14 Jan, 08:50 PM Reply Like
  • surferbroadband
    , contributor
    Comments (955) | Send Message
     
    "SA Contributor Moron Number XXXXXXX"...not even the Federal Government can keep up with this operation.

     

    How do I get a Moron number? I want to be a Moron.
    15 Jan, 01:27 AM Reply Like
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