Green Energy Is Out to Get Tesla

Nov. 11 (Bloomberg) -- Shares of Tesla Motors Inc. fell by as much as 22 percent during one stretch last week, the biggest decline since the company went public in 2010. Much of the attention has been directed to the tendency of the company's Model S to catch fire when driving over metal debris. My colleague Megan McArdle writes that “Tesla could be in big trouble” because “small, new companies are extraordinarily vulnerable to stories like this.” A longer view of the transportation industry, however, suggests that consumers are surprisingly tolerant of danger. The real threat to Tesla would be the withdrawal of government subsidies for all-electric vehicles.

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