Shares Of Tesla Spike Higher In Early Afternoon Trading

Shares of Tesla Motors (NASDAQ: TSLA) surged in early afternoon trading following positive commentary coming from the an executive who was speaking at the Detroit Auto Show.

Tesla currently sells only one car, a Model S sedan. The company is currently accepting reservations for its upcoming Model X crossover which is expected to ship to clients at the end of the year.

Jerome Guillen, Tesla's Vice President of Worldwide Sales, Services said that the company has sold and delivered almost 6,900 vehicles in the fourth quarter of 2013. Previously, the company issued guidance of slightly less than 6,000 cars for the quarter.

Guillen said that the company plans to recall up to 29,000 Model S vehicles because of issues with the wall charger power adapter which could cause overheating in garages.

Guillen also said that the company has no reason to believe that a recal will hinder future sales.

Elon Musk, the company's CEO took to Twitter (NYSE: TWTR) following Guillen's comments to reassure investors that none of its cars are being recalled.

“The word “recall” needs to be recalled.” Elon Musk tweeted. “Some confusion in media reports today. No Tesla vehicles are being physically recalled by Tesla,” the billionaire CEO added.

“There was an over-the-air software update (done last month) and an upgraded US 14-50 adapter will be mailed to customers,” Musk followed up in another tweet.

Shares of Tesla surged more than eight percent, hitting an intraday high of $151.74 following Guillen's remarks and Musk's follow up.

The latest short interest check reveals that approximately 32 million shares are short, representing approximately 40 percent of the float.