To recall or not
Despite Musk's declarations, the National Highway Traffic Safety Administration will make the recall determination.
The NHTSA, along with engineers and executives from Tesla and perhaps outside experts, will study the two Model S battery fires. Based on that information, NHTSA will decide if grounds exist for a recall and and on a specific process to address the problem.
(Read more: Tesla's Musk: Stock's high price was a distraction, seems a better deal now)
If the agency goes for a recall, it tells the automaker, which 99 percent of the time agrees to issue one.
If the automaker disagrees, NHTSA could sue to force the issue, but that rarely happens.
Karl Brauer, senior analyst at Kelley Blue Book said whether Tesla Model S sales will suffer because of these incidents comes down to what the investigation finds.
(Read more: Yet another Model S fire puts heat on Tesla)
"Is there an inherent design flaw in the Tesla's battery pack that makes it more prone to fires compared to other electric cars? That's what NHTSA will be determining," he said.
—By CNBC's Phil LeBeau. Follow him on Twitter
Questions? Comments? BehindTheWheel@cnbc.com.