After three vehicle fires that resulted in a National Highway Traffic Safety Administration investigation, a software update, and a gratuitous dent in Tesla Motors (NASDAQ:TSLA) stock price, the combination of the words “fire” and “Tesla” or “Model S” seems to now provoke a sort of conditioned response for investors to hit the sell button.
That’s what is happening during Friday’s trading session, as Tesla shares are down nearly 3 percent despite the company revealing a preventative measure to minimize incidents like the garage fire that happened in November. As you may recall, the fire was not related to the Tesla Model S itself, which was charging in the garage — instead, the fire occurred within the walls in the vicinity of the charging module that was mounted to the wall of the garage.
Tesla will be updating its wall charger adapters with the new units, including a thermal fuse that is designed to shut down the charging function if overheating is detected, Tesla CEO Elon Musk said.
“These are very rare events, but occasionally the wiring isn’t done right,” Bloomberg quoted Musk as stating. “We want people to have absolute comfort, so we’re going to be providing them with an upgraded adapter.” The new units will be mailed out in the next two weeks, Musk said.
While it’s assured that the car itself was not the cause of the November garage fire, it’s still unclear whether the issue was caused by the construction of the house itself or the charging unit mounted on the wall. The Orange County Fire Authority, which oversaw the municipal investigation into the fire, ruled that it could not determine if the blaze stemmed from the wall socket or Tesla’s module.
Regardless, Tesla is now doing what it does best: issuing a preventative fix. The company has garnered a certain amount of respect for its proactive approach to problems. When the fires resulting from road debris occurred, Tesla sent out a software update that raised the Model S sedan’s ride height to minimize such incidents.