Tesla shares start falling after NHTSA opens investigation on Model S fire image

After the top U.S. auto safety regulator said the agency is now studying an Oct. 1 fire involving one of the plug-in electric carmaker’s Model S sedans, the company shares went down as much as 3.8%.

Tesla shares dipped $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, so investors’ shouldn’t be very worried about the prospects of Tesla’s stock in the long-run.

The agency didn’t initially open an investigation in relation to the fire because most of its employees were on partial furlough because of the partial U.S. government shutdown. It previously also 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 still in the process of“gathering data” on the Tesla accident and hasn’t decided whether to open a formal investigation, Strickland also said. The battery pack in the Model S caught fire Oct. 1 after the vehicle collided with a large metallic object on a road in Kent, Washington.

Via Bloomberg