Sunday, August 1, 2021
79.2 F
Fort Worth

Tesla stock down after Model S fire

🕐 2 min read

 

Peter Valdes-Dapena

NEW YORK (CNNMoney) — Tesla’s stock dropped 6% Wednesday following a negative analyst report and a fiery crash in one of the company’s Model S sedans.

Stock analysts at Baird downgraded the stock to “neutral” on Tuesday which, along with some other negative reports, seemed to start the sell-off in the stock.

Then, in the late morning Wednesday, the auto Web site Jalopnik.com posted photographs from a reader showing a Tesla Model S on fire on roads near Seattle, Wash.

Tesla later issued a statement describing what happened.

“Yesterday, a Model S collided with a large metallic object in the middle of the road, causing significant damage to the vehicle,” Tesla said.

Automatic alerts warned the driver to pull over, the statement said, and the fire began only after the driver was out of the vehicle. The fire eventually consumed much of the vehicle’s front end.

“All indications are that the fire never entered the interior cabin of the car,” Tesla said in its statement. “It was extinguished on-site by the fire department.”

The Model S is a fully electric car with its battery pack housed in the floor of the vehicle. Tesla said the fire started when the metallic object directly hit one of the 16 modules within the Model S battery pack.

“Because each module within the battery pack is, by design, isolated by fire barriers to limit any potential damage, the fire in the battery pack was contained to a small section in the front of the vehicle,” a spokeswoman said.

Tesla has made much of the outstanding safety of its cars, recently boasting that the Model S sedan would have gotten more than five stars in government crash tests if the scale had only gone that high. The car has also gotten rave reviews from magazines like Motor Trend, Automobile and Consumer Reports.

Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

Related Articles

Our Digital Sponsors

Latest Articles

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate