Another Tesla Motors Inc (NASDAQ:TSLA) fire is damaging the company’s stock today. The fire, which occurred in Mexico, was picked up by jalopnik.com earlier today. The last story of a flaming Model S went viral, and did a small amount of damage to the company’s reputation. The company was absolved of liability in the matter in the days after that incident.
If stories like these continue to pop up, however, it may cause a large amount of trouble for Tesla Motors Inc (NASDAQ:TSLA). Even if the company did nothing wrong, repeated reporting of incidents that make the company appear to have a poor safety record could hurt demand, and share price.
Tesla Model S fire
In the Yucatán city of Mérida, a driver, who local media have reported was under the influence of alcohol, crashed his Model S through a roundabout, a wall, and another wall before finally coming to rest after hitting a tree. The car was apparently traveling at very high speed. The driver managed to escape from the car unharmed, but the car was not so lucky.
After the drive left the vehicle, the car caught fire and eventually exploded. The driver fled the scene of the accident. It would appear that this story is actually a case of a Tesla Model S (NASDAQ:TSLA) saving the life of its driver, but in cases like this, perception is often more important than reality. A statement that jalopnik.com managed to get from Tesla suggested that the driver was happy with his experience.
“We were able to contact the driver quickly and are pleased that he is safe. This was a significant accident where the car was traveling at such a high speed that it smashed through a concrete wall and then hit a large tree, yet the driver walked away from the car with no permanent injury. He is appreciative of the safety and performance of the car and has asked if we can expedite delivery of his next Model S,” read the full statement from the company.
Tesla fire problems
This was not a serious accident, and it seems that Tesla Motors Inc (NASDAQ:TSLA) was not at fault, though the crash has not been fully investigated yet. If the public begins to see stories like these pile up, demand for Tesla Motor Inc (NASDAQ:TSLA) cars may suffer. Stock is down by close to 3% on today’s market.