NHTSA reaffirms 5-star rating for Tesla Model S for 2014

Article by Anita Panait, on December 28, 2013

Tesla Motors Inc. has disclosed that the 5-star safety rating given by the United States National Highway Traffic Safety Administration for the Model S sedan is reaffirmed for 2014. The reaffirmation comes even as the NTHSA started an investigation on the Model S last month, following several fire incidents in Tennessee and Washington state involving the electric vehicle, which occurred when drivers struck metal debris while cruising the road.

In an e-mailed statement to Bloomberg, Tesla said that the German Federal Motor Transport Authority -- Kraftfahrt-Bundesamt – has completed its review of the incidents and found no manufacturer-related defects or need for further action.

A third fire took place in Mexico in which a driver collided with a concrete barrier while cruising at high speeds. There were no reported injuries related to the incidents from any of the collisions.

Tesla’s shares have dropped 26 percent from a record high closing price of $193.37 on Sept. 30, 2013 after the battery-related fire incidents were reported. The shares, however, have surged more than fourfold this year to $143.55 at the close in New York trading on Monday.

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