Shares of Tesla Motors (TSLA) have surged today after the upstart automaker issued a recall of charging adapters but said it sold more Tesla Model S sedans than it had expected.
Andrew Yeadon Investors have focused on the latter, as shares of Tesla have jumped 13% to $157.18 at 3:04 p.m. today making General Motors (GM), which has risen 0.6% to $39.81, and Ford (F), which is up 1.7% at $16.39, look like they’re standing still.
The New York Times reports on the recall:
Tesla is issuing a recall action concerning about 29,000 charging adapters for its 2013 Model S electric cars because of a potential fire hazard, the automaker has informed the National Highway Traffic Safety Administration in a letter sent to the agency over the weekend.
Tesla said in the letter, which was dated Jan. 12, that the NEMA 14-50 adapters used for 240-volt recharging of the Model S may overheat, which "could cause problems including melted adapters and, in a worst-case scenario, fire." The adapter makes it possible to connect the car's charging plug to a 240-volt household receptacle.
But those sales, those sales! Bloomberg has the details:
Tesla Motors Inc., the maker of high-end electric cars, gained the most in six weeks after the carmaker said it delivered 6,900 Model S sedans in the fourth quarter, pushing full-year sales beyond a company target.
Sales of the battery-powered Model S, priced from about $70,000 totaled at least 22,450 last year, based on figures previously released by the Palo Alto, California-based carmaker. The company had said it aimed to sell 21,500 in 2013. Tesla revenues for the fourth-quarter will exceed forecasts by 20 percent, the company said separately in a statement.
Tesla’s shares traded down as much as 1.9% this morning before the sales news sent it shooting higher. As they say, a picture is worth my 300 words (click for a larger image):
Correction & Amplifications: This post originally reversed the prices of Ford and General Motors.
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