Tesla Stock Takes Beating After YouTube Video of Model S on Fire


Tesla Motors has been the American dream success story, thanks to its hybrid car the Model S.

The Model S was voted "car of the year" by Motor Trend magazine in January. Over the  summer, Forbes reported Tesla's stock had shot up 500% in one year, thanks to strong sales. In August, Tesla announced the Model S got the highest safety rating "of any car ever tested."

However, Tesla's good fortune and stock took a dive this week because of a video (below) on YouTube showing a Model S on fire. The video, shot on a cell phone near Seattle, was uploaded on Tuesday and already has over 1 million views.

On Monday, Tesla's stock was at $193.37, but closed at $173.31 on Thursday, reports Yahoo! Finance.

According to the International Business Times, Tesla said in a statement: "A Model S collided with a large metallic object in the middle of the road, causing significant damage to the vehicle. The car’s alert system signaled a problem and instructed the driver to pull over safely, which he did... 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."

However, after firefighters put the fire out, it somehow reignited. Apparently, the water that firewaters used actually intensified the fure, so they had to use a dry chemical extinguisher instead, noted the Associated Press.

Firefighters then had to take apart the front end of the car, puncture holes in the battery pack, use a circular saw to cut a hole and apply water to the battery to finally put out the fire.

Sources: International Business Times, Associated Press, Motor Trend, Tesla, Forbes,Yahoo! Finance


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