Speaking to CNBC on the recent news about a violet car crash that included a Tesla Model S, television car host Lauren Fix, who is also known as the ‘The Car Coach’, and Craig Irwin from Wedbush Securities discuss on the repercussions of such an event on Tesla Motors Inc (NASDAQ:TSLA).
“If they (Tesla Motors Inc (NASDAQ:TSLA)) end up having problems like this with fires which is inherent with any vehicle, they need to show, whether it’s fair or not, if they may have taken really big beating with the consumer, because I don’t know, this was publicly announced everywhere, was all in the news, was all with the print, tat Tesla has two fires that the cars, people were injured, people died,” Fix said.
Fix added that the mishap is a total nightmare for Tesla as the company had not seen such events in the past, but now since they have such a calamity, they need to have a proper attitude on it.
Meanwhile, Irwin said: “So, crashes are bad, there is no question about that and you never want to see fatalities, but the fire rate in Tesla’s vehicles is close to an order of magnitude lower than what you see in conventional vehicles. So on a relative basis, I can say danger in Tesla’s vehicles is a fraction to that in other conventional vehicles that the other guest wants to defend.”
Irwin added that Tesla Motors Inc (NASDAQ:TSLA) has proven that it knows how to make cars and also they have proven with their crash safety tests that they can deliver best in class performance and since they have got a hot brand and famous products, a lot of people would like to take their shots on the company based on a recent accident.
Meanwhile, Tesla Motors Inc (NASDAQ:TSLA) is also trying hard with lawmakers to allow consumers directly to buy cars from the company, instead of dealerships, which is the first of a kind step taken by any automaker till now.