by Christopher Freeburn | November 13, 2013 11:55 am
Elon Musk is dismissing speculation that a spate of recent fires involving Tesla Motors’ (TSLA) pricey electric cars could result in federal action.
“There’s definitely not going to be a recall,” Musk told reporters, noting that Tesla is in “constant contact” with the National Highway Traffic Safety Administration (NHTSA), which is looking into the incidents. There have been three fires involving Model S vehicles in five weeks, Bloomberg noted.
The first fire occurred near Seattle, after a piece of road debris struck the undercarriage of a Model S.
A second fire was reported in Mexico on Oct. 18. Last week, a third Model S caught fire after running over a trailer hitch on a Tennessee road. No injuries were reported in the incidents.
TSLA shares fell sharply after the latest fire was reported.
Regulators are now examining the incidents. If they determine that fires in Tesla vehicles are the result of a problem with the car’s design, they could order a recall. Musk insists that the fires are “five times less likely” in a Model S, compared to traditional combustion engine vehicles.
Shares of Tesla gained more than 1% in Wednesday trading.
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