Third Tesla Fire Singes TSLA Stock

Tesla Motors Model S 630Shares of Tesla Motors (TSLA) slumped more than 3% in Friday morning trading in the wake of reports of a third fire involving one of its pricey electric cars.

In the latest incident, a driver hit road debris near Smyrna, Tenn., sparking a fire in his Model S. On Thursday, federal regulators signaled that they planned to investigate the fire, USA Today reports.

I Drove The Tesla Model S: It Totally Lived Up To The Hype
I Drove The Tesla Model S: It Totally Lived Up To The Hype

Federal authorities had previously declined to officially investigate the first fire, which was reported last month outside Seattle. In that incident, road debris was reported to have penetrated battery casing in the vehicle’s undercarriage.

In the wake of the Seattle incident, Tesla owners expressed confidence in their vehicles, dismissing the fire as a “one-off event.” However, a second fire was recently reported in Mexico, after a Model S hit a wall.

None of the three incidents resulted in driver injuries.

TSLA stock was already hurting this week after the company released third-quarter results. While profits more than doubled and beat analyst expectations, vehicle sales disappointed Wall Street forecasts, as did the company’s earnings outlook. TSLA shares are off 17% this week.

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC