A video uploaded to the Jalopnik website resulted Tesla’s stock to fall $12.05 to $180.95 — the stock’s biggest one-day decline since July 16. The video shows a Model S on fire. The incident happened Tuesday morning on State Route 167. According to the driver, he had struck some metal debris on the freeway so he exited. Shortly after that, he says, he began to smell something burning and then the fire started.
From Tesla commented shortly after the incident that the flames were contained to the front of the $70,000 vehicle due to its design and construction. Company spokeswoman Liz Jarvis-Shean said the fire was caused by “substantial damage” to the car when the driver hit a large metal object in the road. But a trooper who responded to the scene was unable to locate any objects on the roadway and the car was too damaged from the fire to show the exact reason for the inflammation.
We remind you that the Model S got top crash-test score from the National Highway Traffic Safety Administration and a tie for the highest auto test score ever recorded by Consumer Reports magazine. That was essential for the Palo Alto – based company’s shares to rise more than 400% for less than a year. But investors likely were alarmed, with some selling their shares, out of fear that the fire could be an indication of a flaw in the company’s battery packs.
Under normal circumstances, investigators from NHTSA, the government’s auto safety watchdog, would travel to Seattle to investigate the Tesla crash. With the partial government shutdown and it is unclear when or if an investigation would begin. A lengthy examination should follow, though, and this could be a make or break issue for the company if the vehicle is found to be at fault. Remember, there’s no gasoline involved here and lithium-ion batteries already have a reputation for running hot and catching fire. Boeing’s 787 Dreamliner was grounded soon after its inaugural flights earlier this year because of electrical fires traced to the plane’s lithium-ion batteries.
