After the reports of the National Highway Traffic Safety Administration regarding the safety problems of Tesla’s Model S, the automotive company has clarified the allegations.
The previous week, the government agency requested information from Tesla about the reported suspension failures of Model S and went for non disclosure agreements . Although, no formal investigation was made, NHTSA kept up the routine data collection.
As CEO Elon Musk declared that something suspicious was happening towards the suspension complaints, a representative from the NHTSA clarified that no safety issue with Tesla’s suspensions was found.
“Of greater concern: 37 of 40 suspension complaints to NHTSA were fraudulent, i.e. false location or vehicle identification numbers were used… Would seem to indicate that one or more people sought to create the false impression of a safety issue where none existed. Q is why?” Musk posted on his Twitter.
Musk indicated in his statement that NHTSA confirmed they found no safety concern with the Model S suspension and have no further need for data from us on this matter.
The allegation rooted from the complaints made on suspension failures of his Model S with a starting price of $70,000. It was followed by a post made by Daily Kanban where the incident was made look like it was not an isolated one.
Tesla’s Goodwill Agreement
Tesla has denied the allegations that customers were pressured to keep quiet amid the suspension issue on the model S. According to the Palo Alto based automotive company, it only presented a Goodwill Agreement to the customers who received free or discounted repairs.
It as written on its website that the customer then agrees to keep the provision of their Goodwill, the terms of the agreement and the incidents or claims leading or related to their provision of the Goodwill.
Further, Tesla mentioned that it has never and would never ask a customer to sign a document to prevent them from talking to NHTSA or any other government agency. 'This agreement never comes close to mentioning NHTSA or the government and has nothing to do with trying to stop someone from communicating with NHTSA,” Tesla explained.
“That is preposterous. The basic point is to ensure that Tesla doesn't do a good deed, only to have that used against us in court for further gain,” it added.
Shares of Tesla Drop
Earlier today, shares of Tesla slid for 4.61 percent to $218.79 with a market capitalization of 30.45 billion. Last Friday, the company had volume of 6,026,603 as it faced the safety concerns on Model S.
The stock has a 200-day moving average of 216.22 and a 50-day moving average of 224.08. Bank of Ericaca issued an underperform rating on the company and a price target of $155. Its 52-week high was $286.65 and a 52-week low of 141.05.
Elsewhere, Tesla may take Samsung SDI as the supplier of its batteries for the company’s Energy unit since its longtime investor, Panasonic, was reported of being the exclusive supplier of batteries for the Model 3.
However, Musk wrote on his Twitter account that Tesla is working exclusively with Panasonic for Model 3 cells and that the news articles claiming otherwise are incorrect.
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