Tags: Tesla | Shares | NY-Times | Flaws

Tesla Shares Gain as NY Times Finds Story Flaws

Tuesday, 19 Feb 2013 03:44 PM

Shares of Tesla Motors Inc., the maker of electric vehicles led by billionaire Elon Musk, rose the most in more than two months after the New York Times said there were flaws in a critical review of the company's battery-powered Model S sedan.

Near Tuesday's close in New York, Tesla shares were up 5.4 percent at $39.02, after trading as high as $39.21. The Palo Alto, California-based company is to release fourth-quarter results Wednesday.

Musk said last week a story by Times reporter John M. Broder was “fake,’’ citing inaccurate details on speed, route, use of the heating system and for failing to properly charge the $101,000 car. Tesla released data from the test vehicle on Feb. 13 to back Musk’s statements.

“Did he use good judgment along the way? Not especially,” Margaret Sullivan said, public editor for the Times, said Monday in an online column, referring to the reporter. “In addition, Mr. Broder left himself open to valid criticism by taking what seem to be casual and imprecise notes along the journey, unaware that his every move was being monitored.”

The paper last week rebuffed Musk’s statements, saying Broder’s story was “fair and accurate.”

The flap between the carmaker named for inventor Nikola Tesla and the flagship newspaper of New York Times Co. came before Tesla reports Model S sales and results for the fourth quarter of 2012. Musk has set a goal of delivering 20,000 lithium-ion battery-powered sedans this year.

Excluding some items, the company may have lost 57 cents a share, the average of 12 analysts’ estimates compiled by Bloomberg.

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