The Tesla stock price has soared upward despite false news of a Tesla Model S recall.
As previously reported by The Inquisitr, despite fear over Tesla battery fires caught on video, Elon Musk says the Model S is actually safer than gasoline-powered cars.
The good news was announced at the Detroit Auto Show, which also featured news about the new 2015 Corvette and the Ford F-150. Fourth quarter sales of the Tesla Model S beat expectations by 20 percent, selling 6,900 of the famous electric vehicles. These numbers also happened to beat their previous sales in the third quarter by 25 percent, proving to the world that Model S is here to stay.
As of the close of the markets on Tuesday, the Tesla stock price was up by 15.74 percent to 161.27. Robert W. Baird analyst Ben Kallo upgraded the stock to “Outperform,” and says the estimated target price for the Tesla stock is $187:
“Tesla remains several years ahead of competitors in battery technology and continues to make progress in ramping production and margin improvement. We think demand for the Model S will remain strong throughout 2014.”
The mood over the Tesla stock news could have been dampened by the announcement from the National Highway Traffic Safety Administration (NHTSA), who claimed there was a Tesla Model S recall. The public filing from the NHTSA says the need for a software upgrade is a recall, but Elon Musk believes this is a misonception:
“Some confusion in media reports today. No Tesla vehicles are being physically recalled by Tesla. There was an over-the-air software update (done last month) and an upgraded US 14-50 adapter will be mailed to customers. The word ‘recall’ needs to be recalled,” said Musk via Twitter, although he echoed those statements in a CNBC interview. “It doesn’t make sense to call it a recall in this situation, it’s an over-the-air update. It’s just not a word that makes sense in the 21st century for the Model S.”
The Model S OTA update will help prevent fires related to the charging system.
The next big event that may affect the Tesla stock price is the impending release of the Model X SUV. Elon Musk also says in 2014 they will be doubling the number of service centers and showrooms.