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.
The brand-new Tesla Model S, the world’s first full electric sedan, is a revolutionary creation in the world of automotive engineering. Fusing enhanced performance, maximum safety, and peak efficiency, it has changed the world’s perception of a golden standard for the vehicle of the 21st century with the highest obtainable safety ratings, the longest range of any electric car, and over-the-air software updates that is incessantly making it better.
Created on the cutting-edge platform of Tesla, the battery’s location on the floor allows the Tesla Model S an extremely low center of gravity, significantly reducing the possibility of rollover while strengthening handling and performance at the same time. Without an engine, the all-new Tesla Model S has a crumple zone that is greater than any other performance sedan to digest the energy of a front end impact.
Tesla Model S is one of the most secured vehicles on the road. Much of its security is owed to the fact that a distinct electric drivetrain sits underneath the car. Model S has a low center of gravity which lessens the risk of rollovers. Model S’s safety record is attested to by its NHTSA and Euro NCAP 5-star safety rating along with establishing a record of the least likelihood of accident to occupants when tried in the United States.
With standard active safety features including self-activating emergency brake, blind spot detection, lane departure warning, collision warning, autosteer, autopark, summon, traffic-aware cruise control, and other optional convenient features, Tesla Model S is still the safest vehicle on the road.
Electric All Wheel Drive
With two engines, one in the front and another in the rear, Tesla Model S meticulously and independently manages torque to the front and rear wheels. The outcome is unrivalled traction control in all conditions. Unlike conventional all-wheel drive cars that give up fuel efficiency for a significant increase in traction, Tesla's Electric All Wheel Drive system enhances efficiency.