Shares of electric car company Tesla Motors continued to fall Thursday after pictures and video of a mysterious Tesla Model S fire circulated on the Internet.
The fire raised concern the popular luxury car -- Tesla is selling all it can make -- might have some sort of flaw with its lithium-ion battery system that could be costly to fix or would spook potential buyers.
“While car fires are typically not newsworthy, we expect this incident to gain heightened scrutiny as NHTSA (National Highway Traffic Safety Administration) and other agencies look to understand how the safety of EVs can be ensured,” wrote Wedbush Securities analyst Craig Irwin in a report to investors.
Tesla shares were down another 4% to $173.51 after falling 6% Wednesday. Still, Tesla has seen a huge run-up in its stock this year, as it has ramped up sales of its luxury electric cars. The stock traded at just above $35 on Jan. 2.
http://www.latimes.com/business/autos/la-fi-hy-tesla-models-fire-shares-20131003,0,5720020.story
