Tesla Motors: The Apple of Automakers

(TheStreet) -- Tesla Motors TSLA, a pure-play electric-car company, is an emerging power among automakers, a newcomer to an innovation-starved industry. Tesla, named after Serbian inventor Nikola Tesla, was incorporated in 2003 and unveiled its first car, the Roadster, in 2007. With a base price around $110,000, the Roadster is in a premium bracket, comparable to gas-powered sport vehicles such as those offered by Mercedes and Porsche. Tesla is growing rapidly, but it faces material risk. Tesla went public on the Nasdaq last June, and its stock has since fallen 2.1%. Already, it has been dogged by recalls. In May of 2009, it sent technicians to the homes of 345 Roadster owners to tighten hub flange bolts. Then, in October, it recalled an estimated 439 cars to remove an auxiliary cable, part of a back-up power system, that presented a fire risk if it chafed a nearby carbon-fiber panel. Relative to the recall woes of major brands, such as Toyota TM, Tesla's were relatively insignificant. They haven't damaged sales, either. Roadster's unit tally has passed 1,500. The sports car is churning asphalt in 30 countries. Continue reading the article.