Tomahawk, WI 12/05/2013 (BasicsMedia) – Tesla Motors Inc (NASDAQ:TSLA) with $17 billion in market is the U.S. all-electric car manufacturer. The company’s flagship car in this category is Model S, a name that in October nearly became synonymous with fire. Talk about fire and the company is now under investigation by the U.S. NHTSA. The road safety agency is looking probing the three fires which resulted after the car ran over metallic object, damaging its undercarrier.

A similar probe has been concluded in Germany where authorizes have found no defect with the car. However, report from the U.S. is expected sometime later this month or early next year. But looking at the investigations and the one that has already been conluded in Europe by German authorities, the U.S. report is widely expected to mirror the same. In other words, it’s highly unlikely that there will be any damaging news for Tesla Motors Inc (NASDAQ:TSLA) from the U.S agency.

The company’s CEO Elon Musk has often used every public opportunity to car his car with what other automakers produce. He concludes that if fire safety is anything to go by, then Model S is safer than any car on the roads to day, saying the car is at least five times safer than gasoline powered cars.

Easing strain

Tesla Motors Inc (NASDAQ:TSLA)’s cars are powered by huge lithium-ion cell batteries which are supplied mainly by its partner Panasonic. The company’s product currently is strained because it’s not able to get enough of the cells. Owing to this constrained, Tesla Motors lags in its deliveries as was noted when the company reported its most recent quarter. Despite having overwhelming orders for Model S, the company could only deliver slightly over 5,500 units in the quarter. This however exceeded what it delivered for the whole of last year but fell short of its own estimates. The company’s estimated delivery this quarter is about 6,000 units. There is high chance that this target will be met because since noting the battery shortage problem, the company has been seeking to post its cells supply. 

Receptive market

Tesla Motors Inc (NASDAQ:TSLA) is fighting entrenched forces in the auto market. Its rivals have the dollar and the political influence that sometimes makes it hard to sell in certain states in the U.S. The latest battle that the company is facing is that which pits it against the auto dealers in Ohio.

The auto dealers in the states are opposed to the company’s direct-to-customer sales approach. However, Tesla Motors Inc (NASDAQ:TSLA) believes this is the best way to penetrate the market given that its cars require more customer elaboration than the conventional car.

While opposition is erecting against the company and other states, the customer satisfaction is helping it win the war, albeit slowly. Several states have caved in and amended the car dealership licenses to allow Tesla Motors Inc (NASDAQ:TSLA) sell its cars in the states. While there are still conditions attached to the licenses such as a single shop operator license, the company is hoping that it would be able to open up more shops in future as electric cars become the mainstream vehicles in the U.S. as they are poised to be.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.