SHARES FALL ON REPORTS OF SECOND TESLA FIERY CRASH
After second Tesla fiery crash, shares
have fallen 16 percent since Oct. 2nd
1500 PST, 24 Oct 2013 SWI Staff, Kurt Flint reporting: There are reports that On Oct. 17 in Merida, Mexico, a Model S sped into a roundabout, crashed through a concrete wall and hit a tree. The driver fled the scene before the car went up in flames. The U.S. automotive Web site Jalopnik reported the story Monday, citing the Mexican newspaper Progreso Hoy.Stock prices dropped today based on the story.Tesla responded that the Model S protected the driver despite the severe, high-speed crash.”He is appreciative of the safety and performance of the car and has asked if we can expedite delivery of his next Model S,” a Tesla spokeswoman said.It was the second time this month that a Model S has burned after a crash. On Oct. 2, a Model S burned after hitting road debris in Kent, Wash.
Tesla CEO Elon Musk said the fire Oct 2nd fire started when a curved metal object punched a 3-inch hole through the armored plate that protects the battery. The car contained the blaze to one section of the battery, and the driver was able to get out before flames engulfed the front of the car.
Musk added that fires are much more common in vehicles with conventional gas engines. It seems that investors are becoming less convinced after the second report in a single month.
Tesla shares fell 4 percent to close at $162.86. They have fallen 16 percent since the Oct. 2 crash.