Shares of Tesla Motors Inc. fell after an Internet video showed flames spewing from the vehicle, which Tesla has touted as the safest car in America, according to the Minneapolis Star Tribune.
USA Today’s version of the story says, "Investors in electric car company and Wall Street darling Tesla were burned today to the tune of a 6.2% share price drop after a YouTube video showed a Model S sedan blazing after an accident near Seattle.
"Shares in Tesla Motors shed $12.05 to close at $180.95 for the stock’s biggest one-day decline since July 16. In after-hours trading, the shares fell another 1.3% to $178.55."
The Star Tribune reports that the fire that "destroyed a Tesla electric car near Seattle began in the vehicle’s battery pack, officials said Wednesday, creating challenges for firefighters who tried to put out the flames.
"Company spokeswoman Liz Jarvis-Shean said the fire Tuesday was caused by a large metallic object hitting one of the battery pack’s modules in the pricey Model S. The fire was contained to a small section at the front of the vehicle, she said, and no one was injured."
The Star Tribune story adds: "The liquid-cooled 85 kilowatt-hour battery in the Tesla Model S is mounted below the passenger compartment floor and uses lithium-ion chemistry similar to the batteries in laptop computers and mobile phones. Investors and companies have been particularly sensitive to the batteries’ fire risks, especially given issues in recent years involving the Chevrolet Volt plug-in hybrid car and Boeing’s new 787 plane."
The Tesla Model S generally retails for about $70,000. To read more details about the car fire, we urge you to click on the link above to the Star Tribune story. Meanwhile, here’s the video of the car fire: