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Tesla Motors recall is huge and tiny

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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October 4, 2010, 4:55 PM ET

Tesla Motors (TSLA) on Friday voluntarily recalled its Roadster 2.0 and 2.5 models, after an incident in which an auxiliary cable chafed against a carbon fiber panel, causing a short, smoke and possible fire behind the vehicle’s right-front headlamp.

The recall affects around 36% all the cars Tesla has ever sold, based on disclosed data through June 30. Sounds huge, until you remember that Tesla is a lot more about hype (and “the future”) than it is about automotive production. That 36% only works out to 439 actual vehicles.

Per usual, bad news isn’t having much of an impact on Tesla stock. In fact, it’s up around 15 cents on a day in which the broader markets are taking a beating …  Maybe shareholders don’t care about the recall, because they realize how small it really is.

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By Dan Primack
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