Wedbush Reiterates Neutral on Tesla Motors Following News of Model S Fire
In a report published Thursday, Wedbush analyst Craig Irwin reiterated a Neutral rating and $180.00 price target on Tesla Motors (NASDAQ: TSLA).
In the report, Wedbush noted, “The lithium battery fire yesterday of a Tesla Model S, which was apparently caused by road debris, underlines safety issue for electric vehicles that are of similar importance to the hazards of gas tank ignition in crashes of conventional ICE vehicles. Reports have confirmed a Model S fire yesterday near Kent, Washington that included ignition of the lithium battery pack. The owner of the vehicle indicated to emergency responders that he had stuck road debris in the HOV lane. When his vehicle started to operate abnormally, the onboard systems indicated he should pull over safely, and he pulled off at the nearest exit before the fire developed. While car fires are typically not newsworthy, we expect this incident to gain heightened scrutiny as NHTSA and other agencies look to understand how the safety of EVs can be ensured.”
Tesla Motors closed on Wednesday at $182.33.
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