Tomahawk, WI 11/20/2013 (BasicsMedia) – There was a time when Tesla Motors Inc (NASDAQ:TSLA)’s stock traded around $200 per share on NASDAQ. It went down a bit, up again and now it’s down at about $126. And TSLA’s market cap is now around $15.46 billion after a significant valuation bleeding following speculative actions by the market. The amazing thing is that while TSLA was widely seen as volatile stock, one that would stagnate at or below $40 a share after it debuted on NASDAQ, the stock turned out to be a darling of Wall Street. Currently the stock is about 40% off its peak price and it continues to slide.

Model S fires sending the stock downward

Model S is TSLA’s flagship car. The car is doing well and is always touted as the safest car in America. However, following the three fires involving the car, investors have been losing their patience with Tesla Motors Inc (NASDAQ:TSLA), giving up the stock and sending the prices tumbling. So far TSLA looks like a humbled stock on the browser as each trading day since the second and the third fires has seen the stock drop in value.

Things would be worse for the company had it not been for an encouraging note from a Tennessee doctor counting his accident survival luck on Model S that he was driving. This was the driver involved in the third fire. Following his encouraging view of the car, the market reacted positively and the stock gained again on the browsers.

However much the company maintains its cars are safe, in fact safer than any other car on the road today, the three fires have consumed a lot of investor confidence in the stock and going up now seems a perfect uphill task. The National Highway Traffic Safety Administration (NHTSA) has launched investigations into the Model S fires at the invitation of the manufacturer. This probe is expected to put to rest all issues regarding the safety of the car which the manufacturer has been at pains to defend. It is expected that if NHTSA turns a positive verdict on the cars as it looks likely, investor confidence will immediately soar and the stock could climb again to the highs it enjoyed before the fires become too common.

TSLA having overwhelming orders for Model S

Most everyone knows that Tesla Motors Inc (NASDAQ:TSLA)’s stock has been humbled in recent times, trading about 40% below its peak price. However, the demand for the Model S car is soaring so much so that the company cannot even meet the delivery schedule. So while the stock is declining sales are going up and this seems to be one important thing that has escaped the bearish market.

So far Tesla Motors Inc (NASDAQ:TSLA) is strained to supply the orders which keep coming from the U.S., Europe, China and some other global markets. One thing which kicked off the perception change on TSLA was the company’s failure to meet the expected delivery in the third quarter. Also, the company’s earning was less than what Wall Street had expected. However, third quarter results were largely impacted on by the company’s huge R&D investment plus a strained production due to battery shortage. So in essence, Tesla Motors Inc (NASDAQ:TSLA) is far from running out of gas or electricity and the stock is just marking time before a sharp takeoff.

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