Recall data for Tesla Motors dissected


Stifel Nicolaus is trying to make some hay out of early data from the NHTSA which indicates Tesla Motors (TSLA +2.2%) has more YTD recalls than Ford.

The EV automaker has had 29,222 units recalled this year compared to the 28,233 at Ford, according to the agency.

In Telsa's defense, the recall was hardly of the traditional variety with Model S owners never needing to take their vehicle into the dealership. Also, most industry watchers think this could be the extent of the Tesla recalls for the entire year.

From other sites
Comments (22)
  • David at Imperial Beach
    , contributor
    Comments (4382) | Send Message
     
    "This year's recall for Tesla was a safety measure to replace at-home plugs for charging Model S batteries." Given that this was a voluntary measure not done under the auspices of the NHTSA, and no vehicles were modified by Tesla service personnel in any way, nor were owners inconvenienced by having to take their vehicle to a service center, it is grossly unfair and prejudicial to characterize this action as a "recall".
    28 Jan 2014, 11:35 AM Reply Like
  • Curt Renz
    , contributor
    Comments (263) | Send Message
     
    David Strickland who recently left as the head of the NHTSA concedes that the word recall is inappropriate in cases like this. It should also be noted that 29,222 is the number of wall adapters that were replaced. More wall adapters were made than cars.
    28 Jan 2014, 11:39 AM Reply Like
  • Dampflok
    , contributor
    Comments (1343) | Send Message
     
    A recall without a recall is no recall!
    28 Jan 2014, 11:36 AM Reply Like
  • marysand
    , contributor
    Comments (14) | Send Message
     
    I would not call those "recalls" since the cars weren't actually called in; I'd call 'em software upgrades.
    28 Jan 2014, 11:37 AM Reply Like
  • 123man
    , contributor
    Comments (1612) | Send Message
     
    Perhaps Ford should recall all the Focus's (or is it Fusion's), I'm confused, because they tried to make them look like a Tesla - or the other way around if Tesla is concerned - NOT!!!

     

    My Model S had a rear seat latch replaced by Tesla, without any failures I am aware of just because they decided it was the right thing to do - don't need the new plug, my S charges perfectly - picked up all the debris around my house so I can't hit anything of consequence, ask my neighbors to do the same - many of them simply got rid of their ICE cars ;-)
    28 Jan 2014, 11:42 AM Reply Like
  • Dan Fichana
    , contributor
    Comments (1918) | Send Message
     
    Just a question:
    When Ford "updated" the cmax software to better mimic the EPA mpg results, was that a recall?
    Nope- it was an update
    How about when they did a firmware fix to the buggy Myford touch? That was an update.

     

    Also accessories which have no bearing on the car, i.e, a plug is not a recall; even Miro, a tesla bear, agrees with that.
    28 Jan 2014, 12:12 PM Reply Like
  • Raster
    , contributor
    Comments (788) | Send Message
     
    I'm a Tesla owner for a year now. And I don't even use the adapter in question that is being replaced. Many owners are not impacted, nor have they ever been impacted because they don't use the adapter either.
    28 Jan 2014, 12:17 PM Reply Like
  • marshgre
    , contributor
    Comments (989) | Send Message
     
    The math seems off. Tesla hasn't even built 29000 cars yet.
    28 Jan 2014, 12:31 PM Reply Like
  • lolmarshgre
    , contributor
    Comments (2) | Send Message
     
    they sold 6700 cars in december
    29 Jan 2014, 06:46 AM Reply Like
  • Cassina Tarsia
    , contributor
    Comments (662) | Send Message
     
    Well ... if anything these numbers at least indicate how may cars that Tesla has produced this year ...29,222!!! Quite impressive, if I don't say! As far as the "recalls" are concerned, I don't think that they amount to a hill of beans ... the cars weren't recalled at all (except for some cars that were built during a particular one month period which needed a slight seat reinforcement) ... everything else was either an over-the-air change that was made or it had to do with the charging cables or fuses in the chargers. Big deal! The cars themselves came out almost flawless! Pretty good for the first full year of production for a brand new auto company!
    28 Jan 2014, 12:44 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5010) | Send Message
     
    This article is purely done to create clicks and FUD.

     

    How can there be 29,222 cars recalled when Tesla Motors has not even made 25,000 cars?

     

    Fuzzy math is what we got.
    28 Jan 2014, 12:49 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5010) | Send Message
     
    Does Stifel Nicolaus have any investments in Oil companies?

     

    Becasue if they do, then this is all obvious.
    28 Jan 2014, 12:53 PM Reply Like
  • fiwiki
    , contributor
    Comments (2647) | Send Message
     
    Stage of a Bubble
    http://bit.ly/uhh59J
    28 Jan 2014, 01:40 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5010) | Send Message
     
    That link is funny.
    28 Jan 2014, 01:43 PM Reply Like
  • fiwiki
    , contributor
    Comments (2647) | Send Message
     
    Yeah, I thought it amusing, but if the grain of truth that exists turns out to mirror TSLA, it will be less funny and more prophetic.
    28 Jan 2014, 06:30 PM Reply Like
  • Ford Prefect 1969
    , contributor
    Comments (2267) | Send Message
     
    @fiwiki
    As far as I can tell, this is a stock that goes up on evidence of business strength increasing and it gets suppressed by immaterial events such as sensationalist media spinning a software update plus an upgraded little adapter plug in the post as an OMG recall! If one were to believe that this "recall" was an expensive disaster for the business then one would have been mislead. Conversely if one were to believe that Chinese new rich are likely to buy a very large quantity of expensive cars from Tesla and add considerably to the company's profitable growth trajectory and ultimate scale one would be correctly informed.
    On balance it looks sensible that increasing business strength is the more substantial argument and the bear case is rather flimsy.

     

    The link you posted relating to bubble thesis suggests that at some point the whole market should declare the price movement a "new paradigm". It is absolutely clear for those familiar with the business theory of Tech Disruption and Tech Adoption that this business is functioning in accordance with a very well established paradigm. Not a new paradigm. Disruptive Technology is the same paradigm espoused by Steve Jobs and it is very well documented. Tech Adoption (crossing the chasm) is also very well documented.
    When it comes to reaching a consensus that the price should go down. I would be hard pressed to join such a consensus when on balance I can see a business gaining considerable strength in accordance with highly respected business theory and that the bubble thesis is supported by miscalculation by analogy with business that operate very differently (in fact the disrupted rather than the disruptor in both technology and business modelling terms) and in all other cases a load of complete bunk like this "recall" non-event and the previous fire non-event, neither of which are material to the prospects of the business except through the wishful thinking of those praying for harm to befall it.
    1 Feb 2014, 06:28 AM Reply Like
  • fiwiki
    , contributor
    Comments (2647) | Send Message
     
    The market can stay irrational, longer than you can stay solvent.
    1 Feb 2014, 10:15 AM Reply Like
  • Ford Prefect 1969
    , contributor
    Comments (2267) | Send Message
     
    "The market can stay irrational, longer than you can stay solvent."

     

    Really? I have a great deal of gratitude to offer to TSLA on the subject of solvency.
    Is that not the problem for the investor that believes that stocks have determinacy to some rational price and (irrationally) bet accordingly.

     

    That kind of irrationality can go even more horribly wrong when one has made errors in the inputs of a rational valuation model. One can wait an even longer period of time for a stock to hit a rational price point that was never even rational in the first place.

     

    I have no opinion about what the price should be. I prefer to spend my time trying to understand the factors and probabilities surrounding what the price will be.

     

    I actually have a very strong preference for a rational debate surrounding the stock. I do not believe a bunch of shorts that are experiencing anger with the market and crying overvalued using modelling metrics applicable to industrial leviathans just because the product has four road wheels is particularly rational except when seen as an overview that tells me the shorts have lost the plot and are heading for another squeeze.
    1 Feb 2014, 10:46 PM Reply Like
  • fiwiki
    , contributor
    Comments (2647) | Send Message
     
    Is that not the problem for the investor that believes that stocks have determinacy to some rational price and (irrationally) bet accordingly.******* I find it amusing that you would chose the term " investor" over speculator.
    2 Feb 2014, 10:06 AM Reply Like
  • Ford Prefect 1969
    , contributor
    Comments (2267) | Send Message
     
    The dividing line between speculator and investor is the ability to understand the subject matter.

     

    I think everyone who imagines TSLA longs are speculators should short the stock hard, thank$ in advance.
    2 Feb 2014, 10:12 AM Reply Like
  • John Bingham
    , contributor
    Comments (1282) | Send Message
     
    Cassina and surfer,

     

    We all know it's the total number of small adapters that some owners use with their wall chargers.

     

    So don't worry! It's the latest advanced maths from the NHTSA.

     

    According to them Tesla only had to recall 117% of their full production of the model S to date.

     

    Next month it's GM's turn and they'll have a 200% recall on replacement furry dice (they usually come in pairs).....
    28 Jan 2014, 01:58 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5010) | Send Message
     
    John, that is even funnier!

     

    Keep the laughs going.
    28 Jan 2014, 04:52 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs