These two incidents suggest that customers can be assured that any safety concerns will be addressed expeditiously by the company. Chrysler customers may not be as re-assured.
Recalling some other figures
In order to succeed, Tesla will need to continually distinguish itself from other automakers. In May, sales for the Nissan‘s Leaf electric car totaled 2,138 — resulting in total sales, so far, for 2013 of 7,614. That’s pretty impressive considering that at this time last year, Nissan had only sold 2,613 Leafs. At this rate, Nissan will see Leaf sales of approximately 20,000 for the year. To put things in perspective, though, Leaf sales in May accounted for only 2% of Nissan’s total May sales of 106,558.
General Motors Company (NYSE:GM)’s electric car, the Chevy Volt, has seen total sales so far for the year of 7,157, which is only 100 more vehicles sold than the same period for last year, of which total sales were 23,461.
A Fool’s conclusion
There has been much debate about whether investing in Tesla Motors Inc (NASDAQ:TSLA) is a wise decision. Some argue that it is a passing fad, and the company will fail to overcome all of the obstacles that stand in the way of a new auto company succeeding in the current marketplace; however, if how the company handled the recall is an indicator of how it will handle other obstacles, I’m very impressed — attention to customer service, clear communication with the consumers, and interest in being proactive are all positive takeaways from this potential roadblock.
In fairness, regarding the zero-emission credits, Tesla reports that first-quarter 2013 gross margins were 17%, in part, due to the sale of $68 million worth of credits (12% of revenue) to other car makers, but it maintains guidance of 25% gross margins in the fourth quarter, assuming zero ZEV credit revenue. Granted, these other concerns are quite relevant, and although I am a staunch advocate of what the company is trying to accomplish, I’ll be staying on the side of the road for now — keeping the company on my watch list and waiting for some of those yellow and red lights to turn green before I decide to invest.
Scott Levine has no position in any stocks mentioned. The Motley Fool recommends General Motors Company (NYSE:GM) and Tesla Motors Inc (NASDAQ:TSLA). The Motley Fool owns shares of Tesla Motors. Scott is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article The Tesla Recall: Bears See a Cloud; Bulls See a Silver Lining originally appeared on Fool.com and is written Scott Levine.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
