[My Belief] Elon would personally fund costs related to a recall

[FredTMC]

I think an NHTSA recall is highly unlikely. Elon thinks the same.

That being said, I think Elon would personally fund any recall corrective actions rather than allow recall costs to impact Tesla's financials. Agree?

How long will NHTSA take to complete investigation? Thoughts? I'm thinking weeks rather than months.

 

[liuping]

I think an NHTSA recall is highly unlikely. Elon thinks the same.

That being said, I think Elon would personally fund any recall corrective actions rather than allow recall costs to impact Tesla's financials. Agree?

How long will NHTSA take to complete investigation? Thoughts? I'm thinking weeks rather than months.

Why on earth do you think the CEO would personally pay for recall costs?

 

[brianstorms]

Yeah, seems like a stretch. Only way I can see that he'd "pay" is in the paper billions he'd "lose" when upon news of a major recall, the stock would fall into the 90s... 80s...70s... I don't like to think about it.

 

[Babylonfive]

If you ask about almost any other company and CEO, you wouldn't.

This is a different animal.

 

[FredTMC]

Why on earth do you think the CEO would personally pay for recall costs?

He has a history of doing things like this.

 

[Suzieq]

Elon's willingness to extend the warranty on the fire issue and other steps he has taken pretty much show that he's willing to "put his money where his mouth is"... In other words, he could not be more committed to the success of creating an affordable electric vehicle. Would he "personally" fund the recall? Maybe, maybe not. But with that kind of commitment, it makes little difference in the end. Like all of you, I'm in this for the long run.

 

[AnOutsider]

Mod Note: To prevent any misconceptions by someone glancing at a title and not reading further, I edited the title to clarify that this is your belief and not something that has been stated.

 

[ecarfan]

Mod Note: To prevent any misconceptions by someone glancing at a title and not reading further, I edited the title to clarify that this is your belief and not something that has been stated.

Good move, thank you. I like the moderation on the TMC forums. I wish Tesla had someone moderating the tesla.com forums, there is too much nastiness there sometimes.

 

[Suzieq]

off topic but: agree on the moderation. Best moderated forum that I have seen. I've left more than a few that needed better moderation.

 

[Luclyluciano]

Elon's willingness to extend the warranty on the fire issue and other steps he has taken pretty much show that he's willing to "put his money where his mouth is"... In other words, he could not be more committed to the success of creating an affordable electric vehicle. Would he "personally" fund the recall? Maybe, maybe not. But with that kind of commitment, it makes little difference in the end. Like all of you, I'm in this for the long run.

I hope it's not like the buyback guarantee. Smokescreen.

 

[EnergyMax]

Why recall? The car has a perfect record on preventing injury. The car resists damage superior to ICE. Even Tesla followers are swayed by the Paranoids, which is why I bought today. (but thanks for contributing to my account

 

[yobigd20]

If the Model S is recalled because of 2 fires that were the result of major accidents yet no injuries at all, then every single petrol based car in the world that has also been in a fire should also be recalled.

A recall is totally not warranted here. An investigation in the first place by the NHSTA is also not warranted. If I were Tesla I'd probably sue the NHSTA for some sort of unfair profiling/stereotyping/defamation.

 

[FredTMC]

Mod Note: To prevent any misconceptions by someone glancing at a title and not reading further, I edited the title to clarify that this is your belief and not something that has been stated.

Thanks!

- - - Updated - - -

If the Model S is recalled because of 2 fires that were the result of major accidents yet no injuries at all, then every single petrol based car in the world that has also been in a fire should also be recalled.

A recall is totally not warranted here. An investigation in the first place by the NHSTA is also not warranted. If I were Tesla I'd probably sue the NHSTA for some sort of unfair profiling/stereotyping/defamation.

i agree. It's highly unlikely. That being said, it's possible

 

[kendallpb]

A recall is totally not warranted here. An investigation in the first place by the NHSTA is also not warranted. If I were Tesla I'd probably sue the NHSTA for some sort of unfair profiling/stereotyping/defamation.

They asked the NHSTA to do this...

Second, we have requested that the National Highway Traffic Safety Administration conduct a full investigation as soon as possible into the fire incidents. While we think it is highly unlikely, if something is discovered that would result in a material improvement in occupant fire safety, we will immediately apply that change to new cars and offer it as a free retrofit to all existing cars. Given that the incidence of fires in the Model S is far lower than combustion cars and that there have been no resulting injuries, this did not at first seem like a good use of NHTSA’s time compared to the hundreds of gasoline fire deaths per year that warrant their attention. However, there is a larger issue at stake: if a false perception about the safety of electric cars is allowed to linger, it will delay the advent of sustainable transport and increase the risk of global climate change, with potentially disastrous consequences worldwide. That cannot be allowed to happen.

...though to me it seems over the top.

 

[Chickenlittle]

if a recall is issued, the stock price already reflects it. if no recall or inexpensive one should bump the stock price. frankly not a bad time to have a recall if it is needed. better to settle issue now before factory really pumps out volumes of cars. most of the cars are in usa, so it would probably cost less to recall. having said that i doubt there will be one and tesla did the correct thing by raising the height. if the 17 inch screen didnt tell you the car wasnt lowered, nobody would know.

 

[Raffy.Roma]

We all know that this matter of NHTSA investigations (that for the time being are only formal) started because of a PR/image issue rather than a real safety issue. To this concern I would like to point out that in the case of the second accident (Mexico) people inside the cabin would have very likely died if they were in another ICE car and for this reason they should be very thankful to Tesla.
That said the PR/image issue comes from the fact that the Model S adopts a new technology creating an unconscious fear in people not used to it.
But, believe me, this unconscious fear is very difficult to be overtook! For this reason the NHTSA is forced to inquire. IMO it's very difficult that there will be a recall. Maybe some slight and cheap changes to be done during normal service.

 

[Royal TS(LA)]

Yeah, seems like a stretch. Only way I can see that he'd "pay" is in the paper billions he'd "lose" when upon news of a major recall, the stock would fall into the 90s... 80s...70s... I don't like to think about it.

I guess this depends. Guys who are long TSLA and got in late are pretty screwed if it goes below the 70s and stays there for months (maybe even years). On the other hand, the ones who want in would prefer the lowest possible price. Since I did not have any money to invest when the stock skyrocketed, I personally prefer the lowest possible entry price .

 

[Chickenlittle]

I guess this depends. Guys who are long TSLA and got in late are pretty screwed if it goes below the 70s and stays there for months (maybe even years). On the other hand, the ones who want in would prefer the lowest possible price. Since I did not have any money to invest when the stock skyrocketed, I personally prefer the lowest possible entry price .

You will have to pardon me if I don't root for you. Why don't you just short it.