Tesla Motors Inc., the electric-car maker being reviewed by U.S. regulators over battery-related fires, jumped in New York trading last week after saying the safety rating for its Model S sedan is being reaffirmed for the 2014 model year.
The flagship vehicle from the Palo Alto, Calif.-based company, with a $70,000 base price, retains a 5-star rating for crashworthiness, the highest designation given by the National Highway Traffic Safety Administration. The agency opened a review of the car last month after fires in Tennessee and Washington state occurred when drivers struck metal debris.
“Any good news is going tosend this stock higher,” said James Ramelli, a strategist for Keeneonthemarket.com. “In the last couple of days of the year, a lot of fund managers are going to want to buy Tesla at these lower levels.”
Tesla advanced 5.5 percent to $151.12 at the close in New York on Friday. While the stock has soared more than fourfold this year, it had plunged 26 percent through Dec. 23 from a record-high closing price of $193.37 Sept. 30 after the battery-related fire reports.
A third fire occurred in Mexico when a driver hit a concrete barrier at high speed. There have been no reported injuries resulting from any of the collisions.
Business, Pages 24 on 12/30/2013