Arthur Wheaton, automotive industry expert and senior extension associate at the Cornell University ILR School, discusses the potential recall of Tesla Motors’ Model S electric sedan.

Wheaton says:

“Tesla is an interesting example of hype and hyperbole. The probes over three fires are not unexpected but may be a mixed blessing for Tesla. Fires and overheating of lithium-ion batteries are very well known. Problems with laptops and cell phones using lithium-ion batteries are so well documented that extra batteries are not allowed in carry-on luggage for air travel.

“Tesla and its stock price has been hailed as a superstar when in fact it is a new company that will face many challenges in a brutal and capital-intensive industry. The probe over the fires may stabilize Tesla if no recall is required and they make changes – as many auto companies do to make their vehicles safer.”

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