Via YouTube

A Tesla Model S electric car caught fire this week after crashing south of Seattle — combining with an analyst’s downgrade to contribute to a 6 percent decline in the company’s shares today. The crash took place in Kent, Wash.

Officials with Tesla provided this statement to the Jalopnik automotive news site.

“Yesterday, a Model S collided with a large metallic object in the middle of the road, causing significant damage to the vehicle. The car’s alert system signaled a problem and instructed the driver to pull over safely, which he did. No one was injured, and the sole occupant had sufficient time to exit the vehicle safely and call the authorities. Subsequently, a fire caused by the substantial damage sustained during the collision was contained to the front of the vehicle thanks to the design and construction of the vehicle and battery pack. All indications are that the fire never entered the interior cabin of the car. It was extinguished on-site by the fire department.”

The Associated Press notes that the Model S has received a top top crash-test score from the National Highway Traffic Safety Administration. The company has touted the car as the safest in the country. Here’s a video of the aftermath of the crash from YouTube.

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  • http://www.shaunnestor.com ShaunNestor

    I am failing to see why this is “news” or why there is any correlation to a decrease in stock price. Fords, Chevrolets, Chryslers, Audis, and Toyotas are involved in collisions and subsequent vehicle fires each day and never make headlines, let alone far reaching connections to the stock price of their parent companies.

    • anon

      So you think Tesla is exactly like Ford, Chevrolet, Audi, and Toyota? I guess you’re right. The cars are exactly the same, basically use the same technology, and are just as prevalent as all those cars. So an accident and a fire is just normal news – it happens all the time! I’m sure there are no more fears of fires with Telsas than any of the other cars you mention that they copied exactly. So yeah – no idea why this would impact their stock price, or make consumers more hesitant to buy their cars.

      • adamsidiali

        Im guessing your response was intended to be sarcastic, but frankly it had about as much riveting information as this article. ShaunNestor is right, tons of cars catch fire regularly and who knows how this crash impacted the car, things happen. Doesn’t mean the Tesla is any less safe than other cars, or that this even needs to be news..

      • Camden

        This is news because Forbes reported the correlation between the report of the fire and the stock taking a dive. The fact that the car is all electric and it caught fire is newsworthy. The cars you mentioned (Ford, Chevy, etc.) have internal combustion engines (except for their electric versions) which everyone knows needs a flammable liquid (we’ll call it “gasoline” for arguments sake) to create the combustion to fire the pistons, which in turn drives the crank shaft. The fact that no flammable liquid (except what is in the lithium-ion battery) is present on the Tesla, I would say that the event is of importance. Not “my garage burned down cause my Chevy Volt caught fire” important, but still noteworthy.

  • Cary Price

    I agree w/ Shaun – the title implies a relationship between a dip in stock price and this accident that goes unsubstantiated – the only dip here is the author of this piece. To top it off – a YouTube link with another dip spewing foul words.

    • victor

      If you talk to a hedgefund trader yesterday you would know. As soon as the word of the fire got spread around during trading hours, the stock started to tank. So yes, there is an absolute correlation between the stock price and the accident report. How is this any different from the Boeing Dreamliner battery incidents and Boeing stock price?

    • calzoneous

      Let’s see your rationale for the 7% drop in the stock then, einstein.

      • Cary Price

        According to valuewalk.com – “The fact that the Tesla Motors Inc (NASDAQ:TSLA) Model S is not immune from car crashes did not cause the drop in price yesterday. The company’s huge valuation makes it susceptible to downside on headline pressure. That shouldn’t be a surprise to investors.”

  • john

    Not sure why this is news. Todd – Sometimes you make it sound so negative. I would say that the headline should read about the fire not coming into the cabin and the design of the car, the messaging system etc being better than conventional cars.

  • AlsoJohn

    This is outrageous. First Obama shuts down the government and now the NSA doesn’t have funding to properly control vehicles when they’re hacking into them. It’s not a coincidence that this happens the 2nd day after Obamacare comes out. This is all Obama’s fault.

  • Carlos Osuna-Roffe

    There’s a place in hell for people who shoot video in portrait mode…

  • Talis

    Sounds like a reason for the stock to go up. The safety of the car proved exemplary.

  • Kelly Whaley

    Tesla is still in the proving stages of it’s product. Stock prices are going to fluctuate when things happen within the company, good or bad. Hopefully Tesla faces this head on, if it’s a problem gets it fixed and puts this behind them as quickly as possible, even if a recall is required.

  • http://ClaussConcept.com Jason Gerard Clauss

    Car catches fire following a collision: Even more likely with a gas-powered car.
    Car warns driver that it is about to catch fire: Not likely with a gas-powered car.
    Fire only affects part of vehicle: Extremely unlikely with gas-powered car.

    And the stock value went down? Who are the morons who are selling the stocks?

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