Deutsche Bank Reiterates Buy on Tesla Motors Following News of Model S Car Accident

In a report published Thursday, Deutsche Bank analyst Dan Galves reiterated a Buy rating and $200.00 price target on

. In the report, Deutsche Bank noted, “We have learned that a Tesla Model S was involved in an accident early Tuesday which resulted in a vehicle fire. According to TSLA, the vehicle collided with a large metal object. As designed, the vehicle then performed a series of diagnostic tests, detected a problem, and directed the driver to pull over and exit the vehicle, which he/she did. The car then started to smoke and a fire started. As designed, the energy/fire was vented to the front and side of the veh to avoid impacting the driver compartment. The fire dep't was called, arrived at the scene and extinguished the fire without further incident. There was no injury to the driver. Although Tesla has not completed a full analysis of the incident, they do believe that the battery pack was damaged in some way and was the cause of the fire. We expect that the company will release a series of statements over the next few days, detailing their analysis and findings. We expect that negative news flow and investor concern over the impact to demand of this incident will put negative pressure on the stock in the nearterm. And these are meaningful concerns, as this is a new technology and one in which sensitivity to safety risk is very high.” Tesla Motors closed on Wednesday at $180.95.