Tesla Model S Fires Starting to Scare People: Kallo

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Nov. 8 (Bloomberg) -- Ben Kallo, an analyst at Robert W. Baird, comments on the reported third fire in a Tesla Model S. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Argument -- cars with gasoline, when they catch on fire, they burn.

So do ours.

Is this the way we should look at this?

It poses a lot of headlines.

That is reflected in the stock price.

To be determined, whether or not effects demand.

Three and five weeks, it is starting to be more than headline risk.

The stock is a phenomenon almost divorced from the car.

You and i were talking about having a bull-bear debate on this broadcast, you went from bull to bear and spoiled the whole thing.

[laughter] do you think this can have such an effect on the stock because it is such a psychologically buoyed stock?

I downgraded the stock on the day of the first fire.

I got lucky there.

There are some built-up expectations there, and this compounded it.

The fact that two of them had a car on fire by running into objects in the road raises a question mark about whether the needs to be change made to the bottom of the battery, the bottom of the car.

It is important to point out that nobody has been heard in these accidents, but they are terrifying.

We don't have the video of the mexico fire, but i put a link to it on twitter.

Have you seen this video, with the explosions?

It is germanic and scary.

-- dramatic and scary.

The fire in washington, they did not know how to put this thing out.

They dusted it with hoses and it started up again.

They had to jack the car up and cut it up to get into it.

Is this technology so new that we will see things like this?

I don't think so, but when you have incidents like this -- mexico is reckless driving.

When you have reports like this, it raises a concern that we are dealing with new technology.

Tesla is quick to point out that there are 150,000 fires in gas powered vehicles in the u.s. per year.

With this new technology, three in five weeks, it comes out to even less than that.

We're talking about a lot of old cars, a lot of unsafe cars.

I think the way to look at this, an interesting study today or yesterday where nick wiseman looked at the number of vehicles driven in the u.s., guessing how many miles are driven by teslas, and looking at the chevy volt and nissan leaf, which have not had any fires on the road.

Does that matter?

It raises a question mark around technology and whether it is safe.

We have to remember that tesla has gone to -- through a crash test, and they did receive good marks on that, five stars across the board.

None of the crash tests actually test whether something goes under the undercarriage of the car.

They have some explaining to do.

That is what investors will be looking for next week, whether or not there will be formal investigation on this.

There have been questions about how long the battery will last.

What do you think those replacement batteries will cost?

What are customers going to have to pay for them, and how much revenue might tesla derive?

Tesla talks about $10,000 to retrofit a battery after eight years.

When you have a couple hundred thousand dollars -- cars on the road, that can be a significant amount of revenue.

A car with a replacement

This text has been automatically generated. It may not be 100% accurate.

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