A company spokesperson said to ValueWalk, “We have been in contact with the driver, who was not injured and believes the car saved his life. Our team is on its way to Tennessee to learn more about what happened. We will provide more information when we’re able to do so.”
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Tesla’s statement confirms..
The statement confirms that fire actually happened. Some of the fans of the company expressed skepticism regarding the efficiency of the car, and they are asking why these incidents are happening. Take note that the intervals of the incidents were just two or more weeks.
1st and 2nd Tesla Model S fire incidents
The first Model S fire happened early in October when the car collided with a large metal object on the road. As a result, the stock price of the company dropped 7%. The second Model S fire occurred in the latter part of October when a drunk driver crashed through a roundabout, a wall, and a tree. Luckily, the driver was safe, but it damaged the reputation of the company. The third incident will not only damage the credibility of Tesla Motors Inc (NASDAQ:TSLA), but also its stock value.
On Wednesday, Tesla Motors Inc (NASDAQ:TSLA) declined more than 14% to $151.16 per share after the company reported its third quarter financial performance. The news of third Model S fire may drive stock lower.
Some analysts bearish on the stock believed that it is overvalued, and they projected that the stock will drop further (half of its current price).
On the brighter side, it is noteworthy that the drivers of the Model S vehicles caught into fire were not injured. Tesla CEO Elon Musk previously stated, “For consumers concerned about fire risk, there should be absolutely zero doubt that it is safer to power a car with a battery than a large tank of highly flammable liquid.”
Photo Credits: DavanH Instagram.