Tesla Motors Shares Drop After Second Fire Crash

Tesla Model S
Shares in Tesla Motors dropped on Monday after a second Model S vehicle fire was reported.  On October 17, a Model S in Merida, Mexico sped through a roundabout and crashed through a concrete wall.  Then it hit a tree and caught on fire.  The driver fled from the scene.  Mexican newspaper Progreso Hoy reported the original story.  Tesla Motors said that the Model S protected the driver from the high-speed crash.

This is the second time in a month that a Model S caught on fire.  On October 2nd, a Model S caught on fire in Kent, Washington after an accident.  Tesla CEO Elon Musk said that fire started after a curved metal object punched a 3-inch hole through the armored plate around the battery. The car contained the fire in one section of the battery and the driver was able to get out.  Musk said that the fires are more common in vehicles with traditional gas engines.

The National Highway Traffic Safety Administration (NHTSA) said that they will not be investigating the October 2nd incident because there is no indication that the Model S fire was caused by a safety defect.

“We were able to contact the driver quickly and are pleased that he is safe. This was a significant accident where the car was traveling at such a high speed that it smashed through a concrete wall and then hit a large tree, yet the driver walked away from the car with no permanent injury. He is appreciative of the safety and performance of the car and has asked if we can expedite delivery of his next Model S,” said Tesla in a statement with BusinessInsider.

Below is a video of the Model S fire in Mexico:

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