Tesla Motors Inc (TSLA) May Be Investigated For Third Fire
Tesla Motors Inc (NASDAQ:TSLA) is going to be investigated due to the latest fire that involves a Tesla Model S. Tesla Motors’ stock has dropped tremendously this past week and CEO Elon Musk lost $1.5 billion in net worth this past week due to the Tesla Motors and SolarCity stock drops.
Tesla Motors Inc (NASDAQ:TSLA) reported recently that the third Model S electric car caught fire in the past six weeks, which has affected the company’s market shares. The most recent fire involving a Model S electric vehicle took place after a highway accident on Interstate 24 in Smyrna, Tennessee on Wednesday. The Model S ran over a tow hitch, which hit the undercarriage of the vehicle. The damage to the car was extensive.
The first incident involving a Model S fire was on October 1st near Seattle. That accident happened when the vehicle hit metal debris on the road, which put a hole through the protective armor plating that protects the battery pack. The second fire happened last month in Merida, Mexico. That car drove through a roundabout and crashed into a concrete wall and hit a tree.
Tesla Motors Inc (NASDAQ:TSLA) closed at $137.95 on November 8th. In the past month, Tesla hit a high of $188.50 (October 15th). On Friday, twenty-two million shares were traded. This is almost double the average daily volume. Tesla shareholders lost $4.7 billion in three days, which is almost 22% of their investment.
Tesla Motors Inc (NASDAQ:TSLA) is not sitting still with the reports of the fires. “Our team is on its way to Tennessee to learn more about what happened in the accident,” stated Tesla spokeswoman Elizabeth Jarvis-Shean. “We will provide more information when we are able to do so.”
When the first fire took place, Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk wrote a blog post about how the battery was contained to a small section near the front by internal firewalls built into the pack structure and at no point did the fire enter the passenger compartment.
Next week, the National Highway Traffic Safety Administration (NHTSA), will decide if a full investigation is needed.
Throughout the year, Tesla Motors Inc (NASDAQ:TSLA) received a lot of positive reception. The Model S received a top safety rating from the NHTSA and it received a “recommended” rating from Consumer Reports. The company posted their first quarterly profit in the second quarter of this year. Tesla stock increased over 470% from January 1st through September 30th.