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

Login or Create new account to add a comment!

Recommended

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 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