Crash caused fire in Model S in Washington State, Tesla claims

Article by Anita Panait, on October 3, 2013

An online picture of a Tesla Model S on fire has caused shares of Tesla Motors Inc. to drop by as much as 9.1 percent.  The Jalopnik Web site published the picture, which was taken in the Washington State. The Web site had earlier said it couldn't provide a reason for the fiery incident. Tesla, however, said that the Tuesday fire was caused by a crash.

Tesla said in an e-mailed statement to Bloomberg that the Model S "collided with a large metallic object in the middle of the road, causing significant damage to the vehicle."

Tesla’s shares dropped 6.2 percent, or $12.05, to close at $180.95 in New York trading on Wednesday.  According to Tesla, the driver of the Model S managed to exit the vehicle safely and then called authorities. A fire caused by damage incurred in the crash was contained.

Tesla is aiming to become the most profitable electric carmaker in the world, employing technology designed in-house.

Ben Kallo, a Robert W. Baird & Co. analyst, remarked that plans by the Palo Alto, Calif.-based carmaker to hike output and add new models increased execution risk that could weigh on the stock. On Wednesday, Kallo downgraded Tesla to neutral from outperform.

Tesla is increasing production of the Model S and plans to introduce a Model X sports utility vehicle. He also said that "any hiccups in execution present stock-price risk in the near to intermediate term," Kallo wrote in a report.

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries