Electric Car Maker Tesla Opens Store In Miami Mall

Tesla has a strong and growing presence in Germany, with 5 existing dealerships and 5 more coming soon, which is why the German safety regulator’s review of the company’s recent fire incidents is so important.

“Tesla received a recent inquiry from the German Federal Motor Transport Authority, Kraftfahrt-Bundesamt (KBA), regarding the Model S post-crash fire incidents in Seattle, Tennessee and Mexico… They [KBA] have the power to initiate and perform investigations, and compel recalls. In response, Tesla provided the KBA with data and additional information regarding each of these incidents,” Tesla explained in a press release.

KBA response:

According to the documents, no manufacturer-related defects [herstellerseitiger Mangel] could be found. Therefore, no further measures under the German Product Safety Act [Produktsicherheitsgesetz (ProdSG)] are deemed necessary.”

While this appears to be good news for the electric vehicle manufacturer, Tesla is not out of the woods yet, as the US National Highway Traffic Safety Administration just opened a preliminary investigation into the battery fires.

The Detroit News today reports:

“The government typically takes up to six months before deciding whether to upgrade a preliminary evaluation to an engineering analysis — to determine whether the issue poses an unreasonable risk to safety. At that point, it can formally ask an automaker to repair the vehicles.”

A major safety recall could be devastating to the up-and-coming company. Tesla’s stock began the year trading around $35 per share and is currently around $130, though news of the fires has reduced its value from a high of roughly $195 reached September 30th.