After the top U.S. auto regulator said the agency is studying an Oct. 1 fire involving one of the plug-in electric carmaker’s Model S sedans, the company shares fell as much as 3.8%.
Tesla shares fell $1.06 to $171.54 at the close in New York, after sinking as low as $166.11. The shares have risen more than five-fold this year.
The agency didn’t initially investigate the fire because most of its employees were on furlough during the partial U.S. government shutdown. It previously investigated fires in two other battery-powered vehicles, GM’s Chevrolet Volt and Fisker Automotive Inc.’s Karma.
“We have our experts that are in contact with Tesla right now,” National Highway Traffic Safety Administrator David Strickland told reporters.
NHTSA is “gathering data” on the Tesla accident and hasn’t decided whether to open a formal investigation, Strickland also said. The battery in the Model S caught fire Oct. 1 after the vehicle collided with a large metallic object on a road in Kent, Washington.
by Aurel Niculescu
) - Wednesday, October 23rd, 2013 - filed under Industry
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