Tesla Motors shares down on viral fire video

Oct 03, 2013, 5:06 PM EDT
The Tesla Model S, Motor Trend Car of the Year is introduced at the 2013 North American International Auto Show in Detroit, Michigan, January 15, 2013.
AFP/Getty Images/STAN HONDA

Shares in electric car maker Tesla Motors fell by as much as 10% before recovering half of that by close of Thursday trade after a video of one of the company's flagship Model S vehicles catching alight went viral on social media. The company said the car's battery caught fire after hitting a large metallic object in the road. The incident has reignited investors' fears about the safety of lithium-ion batteries, though Jeff Bartlett of Consumer Reports called the fire an "anomaly" and in August the vehicle received a rare five-star rating from the U.S. National Highway Traffic Safety Administration. Despite the latest decline, Tesla shares are still trading at more than six times their 52-week low.

 

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