$TSLA: The Most Tangible Of All Visible Mysteries – Fire

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If dropping over 14 percent or $25 wasn't enough today for $TSLA longs they could see more of their investment go up in smoke tomorrow. We were the first to bring the latest Tesla car fire in Tennessee to twitter this evening. A shout out to the folks over at Tesla Motors Club for getting the pictures and as many details as they could.  http://www.teslamotorsclub.com/forum.php

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The pictures above say about 75,000 words. There was no collision or any other type of accident and it appears as if the car spontaneously combusted. If this was the first fire, it might be regarded as a very isolated incident. But it isn't and that's the true issue. The folks at $TSLA now have a big problem on their hands. While the bears have been picking at $TSLA and its supposed bloated stock price via financials and comparisons to other auto makers such as $GM, it appears $TSLA's battery issue will be what takes it down to even lower prices.

The person who was kind enough to share these pictures tweeted:

yes happened about 1:30 today just south of Nashville

don't think there was any crash. Just burned. Driver ok

That's the good news: nobody was hurt. In the company's favor, there's no doubting the $TSLA brand, reputation, craftsmanship. I have called $TSLA customer service often and they pick up on the first ring. I have never been put on hold. But alas; Elon Musk, the company's founder, has yet to return my calls. Elon, I'm waiting!

To see three fires in such a short span of time creates a serious problem and this will need to be addressed quickly. I also believe it will negatively impact $TSLA's share price in the short term. The previous two fires were the result of a crash/foreign object and not necessarily a defect. However, this fire looks unprovoked and that certainly isn't good.

I still like this stock long-term. I think this issue will be addressed and/or resolved and months from now it will be a distant memory. But right here, right now, $TSLA will come down to the $135 area where solid support lies. Let's hope for the longs' sake that that figure holds and doesn't go up in smoke.

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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