Tomahawk, WI 10/03/2013 (BasicsMedia) – Elon Musk, the CEO and Chief Product Architect of  Tesla Motors Inc (NASDAQ:TSLA) must have realized the importance of Warren Buffett’s famous quote – “It takes 20 years to build a reputation and five minutes to ruin it. A recent video showing a Tesla Model S catching fire near Seattle has now gone viral on video sharing sites. And this has led to a crash in Tesla’s stock price. On the face of it, it seems that reputation of Tesla cars is hampered by this one off incident as the stock went down by more than 7 percent in less than 5 minutes.

But it is possible that concerns of investors, or rather traders are a bit overdone here. It seems that public is vary of safety of Lithium Ion batteries as this technology has only recently started gaining traction in mainstream automobile industry. Regulators too are keeping a close eye on development and safety of this new trend.

But Elon Musk is leaving no stones unturned and is in full damage control mode. The company has gone public with a statement clarifying that fire was not caused by car’s faulty engineering. Though it has confirmed the authenticity of video, it has clarified that the crash was caused by vehicle hitting something on the road which eventually led to the fire. It has been heard that state troopers, who were eye-witnesses to the incident and were among first ones to have interacted with the driver, have confirmed that car did indeed struck metal debris while cruising on State Route 167 near Seattle.

But this incident may not be that bad for Tesla after all. If Tesla’s statements are to be believed, then it seems that car’s artificial intelligence system actually prompted the driver to pull over and seek assistance. Now if this is true, then it can go a long way in building public perception about Tesla’s high safety standards. Though born out of a negative incident like a car-fire, company can and rather is using this episode to highlight other safety features of the car! Tesla’s statement also added that car has been designed in such a manner that it prevents fires (started in fronts) from spreading throughout the car.

There is also a small set of people who are speculating hands of other ‘green’ car makers in this episode. But the same has not been confirmed from reliable sources.

Tesla and its CEO have been in news for a variety of positive reasons in recent past. And it is one of the most important phases for Tesla history as it has many significant milestones lined up over the next 18 to 24 months. Some of these are like ramping up of production and the introduction of much awaited Model X. And as already said, this incident is more of a temporary hiccup for this 24 billion dollar company as its shares have already been on fire since January and have given a return of more than 400 percent to its investors.

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