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 Hot Wheels! Tape of Tesla Fire Has Stock Tanking

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PostSubject: Hot Wheels! Tape of Tesla Fire Has Stock Tanking   Thu Oct 03, 2013 5:22 pm

Tape of a Tesla (TSLA) on fire is giving new meaning to the term "hot wheels." The video was shot on Tuesday after a Model S sedan went up in flames. The driver was traveling down a highway in Washington State when he hit some metal debris. Fortunately he pulled over and got out of the vehicle safely. Soon the luxury electric ride was a fireball.
As the video went wild on YouTube, Tesla's stock began tanking. It dropped more than 6% on Wednesday and moved lower again on Thursday. In an e-mail sent to The New York Times, Tesla spokeswoman Elizabeth Jarvis-Shean wrote that the fire was caused by the “direct impact of a large metallic object to one of the 16 modules within the Model S battery pack.” The e-mail went on to say, “Because each module within the battery pack is, by design, isolated by fire barriers to limit any potential damage, the fire in the battery pack was contained to a small section in the front of the vehicle.”
Sounds like everything was under control. Right? But the video appears to show anything but containment of the flames. Perhaps that's why investors began selling Tesla stock. Hot Stock Minute host Lauren Lyster and Yahoo Finance Senior Columnist Mike Santoli discuss Tesla, the fire, and the implications in the video above.
Tell Us What You Think!


http://finance.yahoo.com/blogs/hot-stock-minute/hot-wheels-tape-tesla-fire-stock-tanking-143141168.html
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