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Partial Recall

Discussion in 'TSLA Investor Discussions' started by LST, Jun 19, 2013.

  1. LST

    LST Senior Member

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    On the TM site Elon just published a partial recall of Model S produced between May 10 and June 8. Whilst this is bad news for Tesla, but not dangerous IMO, this will help longs to reinvest at lower prices. Any idea how much setback that kind of info can cause on a highly volatile stock ?
     
  2. cwerdna

    cwerdna Active Member

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  3. CapitalistOppressor

    CapitalistOppressor Active Member

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    Seems like a minor issue that affects less than a month of production. There is no real reason for this to affect the stock price, though I admit the stock is volatile. I'd be shocked if there were a major reaction. It's just a bracket.
     
  4. deonb

    deonb Active Member

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    800 cars times let's say $500 each to fix == $400'000. (Doesn't seem like new parts, and work is performed in a few hours).

    Or the profit from about 1/2 a days worth of production.

    And if the stockholders have to pay for it, it's about a 1/3rd of a cent on the stock price.


    If the market is smart it will be a non-event. Of course there has been no indication of the market being smart so far...

    So there will likely be a gap down pre-market, which will present a buying opportunity, followed by a gap fill during market hours once sanity sits back in.
     
  5. AnOutsider

    AnOutsider S532 # XS27

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    Smart to announce it before the swap event
     
  6. gameon

    gameon Member

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    yeah I agree. He is smart kind of slip the new in between the good one. Right now, mart is not reacting to this new at all (as if they don't know or care less compare to battery swapping thing)
     
  7. Zaxxon

    Zaxxon Member

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  8. fastcars

    fastcars Member

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    wondering that approach is not going to get any revenue short term or long term (way long here)
     
  9. ShortSlaver

    ShortSlaver Member

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    I think the market is a bit - happy to see this level of service and that's a rather small thing they're fixing on a limited number of cars.
     
  10. wycolo

    wycolo Active Member

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    Shows the process is working like it should be.
    --
     
  11. Alfafoxtrot1

    Alfafoxtrot1 Member

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    Once again, Elon and TM stand above the rest. Contrast their approach with Chrysler's hesitancy to reall the Cherokee in the face of widespread catastrophic failure.
     
  12. gameon

    gameon Member

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    It’s a very proactive approach, yes, but Tesla can afford to do that right now because they are such a small-volume producer. I wonder, as Tesla grows, how it would handle a broader recall, especially without a big network of dealers. Will Tesla be able to give such attentive service?


    Also, I was puzzled by this statement in his explanation: “we discovered that, due to body side alignment adjustments in the factory, the bonded section of the joint was compromised and the welded section of the joint was weakened in some cars.” I understand these cars are practically handmade, but that doesn't sound like a well-engineered body — if you have to make adjustments to the alignment that are significant enough to compromise a welded joint, you've got problems. I would love a more detailed explanation, as well as visual evidence of what’s going wrong in the manufacturing process.
     
  13. vfx

    vfx Well-Known Member

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  14. Blurry_Eyed

    Blurry_Eyed MS Sig #267, MX Sig # 761

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    Tesla investor guidance is that recall will cost about $150,000. Pretty insignificant in dollar terms. Keep our fingers crossed that the Media spins this positively as a story of Tesla's great response and that it doesn't have any negative brand impact.
     
  15. DaveT

    DaveT Searcher of green pastures

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    deonb, smart call. You nailed it.
     
  16. cwerdna

    cwerdna Active Member

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    I don't have any details but the below are the two associated documents I can find so far from safercar.gov/NHTSA. The NHTSA campaign # is 13V249000.

    http://www-odi.nhtsa.dot.gov/acms/cs/jaxrs/download/doc/UCM440427/RCAK-13V249-2732.PDF
    http://www-odi.nhtsa.dot.gov/acms/cs/jaxrs/download/doc/UCM440239/RCDNN-13V249-4963.pdf
     
  17. VolkerP

    VolkerP EU Model S P-37

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    The Difference

    What's the difference between Tesla Motors and GM?

    at Tesla Motors, avoiding recalls is a design objective.
    at GM, it is an after sales practice.

    :wink:
     
  18. Seven7

    Seven7 Member

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    Agreed! This is a voluntary recall by Tesla as opposed to the typical GM recall where GM tries to hide the problem and then deny it's a problem when the .gov insists on a fix.
     
  19. pz1975

    pz1975 Member

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    Geez you scared me! I thought it was a new recall! I had strategies for short-term trading going through my head until I saw the date.

    Don't bump like that!! :)
     
  20. mrdoubleb

    mrdoubleb Active Member

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    I know, right? First i thought "oh,s**t, let's read on and see how bad is it". Then I kept reading and I was like "phew, it happened on the 18th or 19th, we are already past it, so no worries"... it took me a couple of minutes to realize this was all in 2013... almost exactly a year ago. LOL.
     

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