Tomahawk, WI 10/29/2013 (BasicsMedia) – Tesla Motors Inc (NASDAQ:TSLA) seems to be experiencing not so good reception in the market especially after it lost about $2.5 billion in value after its black model S electric Sedan erupted in flames after striking a metallic object. The news got even worse after reports indicated the vehicle was sprayed with water to extinguish the flames. The stock was trading at $ 193 and later at $173 after the video of the car on flames went viral online. The problem with extinguishing the car with water is that the situation got even worse something that brought a lot concerns from many quarters. This incident greatly underscored the question of how secure and safe in terms of fires are electric vehicles.

It is not that gas cars never catch fire, but the biggest question in many people at the moment is how safe are the Electric Vehicles. The company was quick to thwart claims that their vehicles are not safe for driving by pointing out the Model S had driven over 83 million miles without any significant incidents or accidents. The problem with the fire is that it was extinguished but later emerged underneath the car prompting fire fighters to use dry chemical flame retardant. Much is still being awaited, to see if the incident will push the stock prices lower even further. This is a major problem for Tesla as the electric Vehicles act as the main source of revenue for the company. Analysts are in the fold to see what will be Tesla Motors Inc (NASDAQ:TSLA) next course of action in instilling consumers and investors’ confidence in terms of their wide range of products

 To try and curb the looming problems the company has appointed Doug Field as the president of vehicle programs. Doug will be responsible for spearheading development programs for new vehicles. Doug is seen as the right person to see Tesla through the turbulent times it is experiencing as he comes with lots of experience. Field had previously worked at Ford Motor Company as an engineer later joining CTO and Apple Inc. Tesla was lucky to be spared by federal regulators after the incident who decided not to open any official investigation. The National Highway Traffic Safety Administration was quick to quote in a statement that it had not found any proof that the battery fire was the result of the vehicle safety defect. The Company’s stock are down by as much as 10% as concerns continue to fill the air.

Tesla Motors Inc (NASDAQ:TSLA) in other good news has been given the approval to apply for a dealership license in Virginia; this is after extensive discussion involving Virginia Department of Motor vehicles and Virginia Automobile Dealers Association. Opening a retail store in Virginia is seen as an added advantage for Tesla Motors in terms of increased revenue collection a as the store will be close enough to the city where many desirable customers reside. Car dealers have always maintained a hard stance against privately owned showrooms. Tesla has always tried to maintain stable margins in the market by insisting on selling vehicles directly to customers.

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