After report of Model S catching fire, Tesla shares go down image

After an automotive blog published images of a Model S electric sedan in flames after an accident on Tuesday morning just south of Seattle, Washington, the following day Tesla Motors shares fell 6%.

Jalopnik posted the pictures and a video of the Model S fiery accident on Wednesday. Tesla confirmed the authenticity of the images and disclosed that actually the car only caught fire after the driver ran over a “large metallic object”, causing extensive damage to the front end and the underbelly of the car.

It is yet unclear if the Model S lithium-ion battery pack was also hit. Firefighters found it difficult to extinguish the flames, and fire damage made it tough to determine the exact location of the impact of the object on the car,according to Chris Webb, a spokesman for the Washington State Patrol.

Following the report on the serious accident, though it had no victims, Tesla shares went down slightly by  6.2% to $180.95 on the Nasdaq, which is actually their biggest one-day decline since mid-July. Still, there is no big trouble with the slight dip, as so far this year, Tesla shares have actually grown spectacularly, by more than 400% and the company’s market value currently is around $23 billion, nearly half that of General Motors Co, which is a lot bigger and only worth $49 billion.

Via Reuters