Elon Musk News 12/11/2016
Daily Elon Musk News
Tesla Motors Inc. said it’s voluntarily recalling about 7,000 adapters for electric-vehicle charging after two reports of overheating that resulted in melted plastic on the plugs. The rarely used item is sold through the company’s online store.
Two customers reported overheating in November, according to an e-mail the company sent to customers Tuesday. No damage besides the melted plastic was reported, and Tesla said it has notified U.S. regulators of its voluntary recall. The accessories were manufactured by an outside supplier and haven’t been sold for at least six months, according to Tesla.
The two cases of overheating equipment involved the NEMA 14-30 adapters, which are sometimes used to charge Tesla vehicles via clothes-dryer appliance outlets in U.S. homes. International customers aren’t affected. Replacements will be shipped beginning in the next few weeks, and customers should avoid using them in the meantime.
The company will also be replacing the NEMA 10-30 and 6-50 adapters, which have a similar design. Those replacements will take about three months, but as there haven’t been any reported instances of overheating in those versions, customers who rely on them may continue to use them, according to the company.
Despite the broader market closing at all-time highs, shares of electric car maker Tesla Motors(NASDAQ:TSLA) slipped 11 cents on Friday to close at $192.18. TSLA hit an intraday low of $190.81 following a research note from JP Morgan (NYSE:JPM) analyst Ryan Brinkman writing that after meeting with General Motors’ (NYSE:GM) CFO Chuck Stevens and test driving GM’s new Chevrolet Bolt, he expressed concern about Elon Musk’s company being able to achieve its profit objectives.
Commenting on the new Bolt, the analyst said the electric vehicle (EV) represents “solid competition” for Tesla’s upcoming compact luxury sedan Model 3 and that GM is the first automaker to globally market a “modestly” priced battery electric vehicle with a range in excess of 238 miles. Additionally, and to illustrate the importance of Bolt, Brinkman points out that GM plans to extend its EV beyond sales to consumers and into ride-sharing apps, including of the autonomous variety.
Brinkman, who reiterates an ‘Overweight’ and ‘Underweight’ rating on GM ($37.66) and Tesla stock, respectively, also notes that Tesla will find it increasingly difficult to profitably compete in an increasingly competitive market for electric vehicles.
It should be noted that this is not the first time Brinkman has expressed skepticism about Tesla’s ability to hit its objectives. Back in May JPM’s analyst said he was doubtful of Tesla’s production plans for its upcoming Model 3 mass-market to build a total of 500,000 all-electric vehicles in 2018, two years ahead of schedule.
“We previously held some hope that, with improved execution, Tesla could prove relative skeptics such as ourselves wrong, by in fact ramping to 500,000 units by 2020. We think they stood an outside chance of doing this. But these new targets we think standstill less chance of being accomplished within the given more aggressive timeframe,” Brinkman wrote at the time in a note to investors.