Tesla shares fall further on Model S fire

October 3rd, 2013 by Mike Baker in Technology / Business

Shares of Tesla Motors are down another 5 percent as investors in the high-flying company assess the fallout from a fire in one of its $70,000 electric cars.

The fire began in the car's battery after the driver hit metal debris. Firefighters extinguished the flames and no one was hurt.

Tesla says it's the first fire in one of its cars. Experts say electric car fires are rare, and consumers should still consider buying them.

Tesla shares fell 6 percent Wednesday as video of the fire surfaced. Shares were down $9.90, or 5.5 percent, to $170.05 around midday Thursday. The stock is still up 400 percent year to date.

Deutsche Bank analyst Rod Lache calls the fire an isolated incident and still expects Tesla shares to reach $200.

© 2013 The Associated Press. All rights reserved.

"Tesla shares fall further on Model S fire." October 3rd, 2013. http://phys.org/news/2013-10-tesla-fall.html