Tesla Stock Is Tanking After A Third Model S In Two Months Catches Fire

A Tesla Model S car caught fire on Wednesday in Smyrna, Tennessee, according to Tesla Motors Club blog (via ValueWalk).

This is the third Tesla to Model S vehicle to catch fire in the past six weeks, a Tesla spokesperson confirmed to Reuters.

The driver of the vehicle was said to have sustained no injuries and a Tesla team is on its way to Tennessee to see what happened.

Tesla again pointed out that the fire was the result of an accident and not “spontaneous.”

@Nashvillian_ on Twitter posted this image:

A Tesla Model S caught fire in Mexico back in October after the car crashed through a concrete wall and into a tree.

Before that, another Model S caught fire after colliding with a large metallic object on Washington State Route 167, in early October.

At the time Tesla CEO Elon Musk took to his blog to defend the Model S saying, he reiterated that it was because of the powerful impact with the metal object on the road. He also said the fire department was wrong to “puncture the metal firewall, as the newly created holes allowed the flames to then vent upwards into the front trunk section of the Model S.”

“For consumers concerned about fire risk, there should be absolutely zero doubt that it is safer to power a car with a battery than a large tank of highly flammable liquid,” Musk wrote.

But in its 10-Q Tesla has previously pointed out that the lithium ion batter cells “have been observed to catch fire or vent smoke and flame, and such events have raised concerns, and future events may lead to additional concerns, about the batteries used in automotive applications.”

The stock is down 6% today to $US142.12, but has been taking a beating since the company announced Q3 results on Tuesday.

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