Recall? No Problem! Tesla (TSLA) Continues Pressing Shorts Amid News
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Despite Tesla Motors (Nasdaq: TSLA) announcing a partial recall of its Model S, investors appear to be seeing the event as a small blip on the radar.
Shares are up over 2 percent Wednesday.
Really, the recall affects autos manufactured between May 10, 2013 and June 8, 2013, which is less than a month of production. Secondly, unlike larger auto makers, Tesla moved promptly to resolve this issue, not like issuing a recall for cars made in 2004, for instance.
Tesla is clearly not producing tens of thousands of vehicles per month like Ford, Volkswagen, or Daimler, but that also helps its ability to issue a quick correction. More damage would have been done should headlines hit the wires of a defect before Tesla intervened.
Also, the defect might be considered a minor one: the attachment strength of the mounting bracket for the left hand latch of the second row seat could be weaker than intended, Tesla said. It's not like having the potential for engine fire, but still risky enough for Tesla to head it off before any adverse event happened.
Short interest on Tesla fell 19 percent from the middle through end of May to 18.59 million shares, or 24.2 percent of public float. The stock is up about 200 percent in 2013.
Shares are up over 2 percent Wednesday.
Really, the recall affects autos manufactured between May 10, 2013 and June 8, 2013, which is less than a month of production. Secondly, unlike larger auto makers, Tesla moved promptly to resolve this issue, not like issuing a recall for cars made in 2004, for instance.
Tesla is clearly not producing tens of thousands of vehicles per month like Ford, Volkswagen, or Daimler, but that also helps its ability to issue a quick correction. More damage would have been done should headlines hit the wires of a defect before Tesla intervened.
Also, the defect might be considered a minor one: the attachment strength of the mounting bracket for the left hand latch of the second row seat could be weaker than intended, Tesla said. It's not like having the potential for engine fire, but still risky enough for Tesla to head it off before any adverse event happened.
Short interest on Tesla fell 19 percent from the middle through end of May to 18.59 million shares, or 24.2 percent of public float. The stock is up about 200 percent in 2013.
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