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Will Tesla Design New Vehicles In Time To Prevent More Devastating Battery Fires?

Tesla (TSLA), which has had a huge run-up, was recently in the news for negative reasons involving battery fires. We believe Tesla faces some big potential legal liabilities in the billions if these types of accidents occur again due to poor design of the vehicles which they claimed are the ‘safest on the road’. As you can see from the video here, the battery area is too close to the ground. Incidents are common in gas based vehicles, but companies such as Ford (F) and GM (GM) have established long time plans in place to counteract a number of scenarios. We do not believe Tesla is prepared to recall a large number of their vehicles if certain problems continue to pop up.


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