Tesla Model S Catches Fire, Video Spurs Drop in Stock Value

A video of a Tesla Model S engulfed in flames surfaced on the Internet today, prompting the American automaker’s stock value to take a tumble.

At one point, Tesla’s stock dropped over 9 percent but closed at the day down 6.2 percent at $180.95. The American automaker acted quickly to release a statement on the Model S on fire, confirming that it occurred after the sedan was involved in an accident with a “large metallic object.”

“Yesterday, a Model S collided with a large metallic object in the middle of the road, causing significant damage to the vehicle,” said Elizabeth Jarvis-Shean, director of global communications at Tesla. “The car’s alert system signaled a problem and instructed the driver to pull over safely, which he did. No one was injured, and the sole occupant had sufficient time to exit the vehicle safely and call the authorities. Subsequently, a fire caused by the substantial damage sustained during the collision was contained to the front of the vehicle thanks to the design and construction of the vehicle and battery pack. All indications are that the fire never entered the interior cabin of the car. It was extinguished on-site by the fire department.”

[vs-jwplayer movieid=”q0kjI08n4fg” autoplay=”0″]