Tesla Motors shares fell another 4% on Oct. 3 as investors assessed the fallout from a fire in one of its $70,000 electric cars, reports The Detroit News.
The fire began in the car’s battery after the driver hit metal debris. Firefighters extinguished the flames and no one was hurt.
According to Tesla, it is the first fire in one of its cars. Experts say electric car fires are rare, and consumers should still consider buying them.
Tesla has been a Wall Street darling this year, selling more cars than expected and posting its first-ever profit. Shares fell 6% on Oct. 2 as video of the fire surfaced. The shares closed Oct. 3 at $173.31, were down $7.64, or 4.22%. At that price, Tesla’s market value has dropped about $2.5 billion in the past two days.
Deutsche Bank analyst Rod Lache told investors that he views the fire as an isolated incident and still expects Tesla shares to reach $200.
Source: The Detroit News
