Tesla Catches Fire, Video Goes Viral, Stock Sinks

This article from Forbes shows just how jumpy investors are these days and how every new story causes some kind of fierce reaction

This video has gone viral

https://www.youtube.com/watch?v=q0kjI08n4fg

Jim Gorzelany, Contributor

I write about how to maximize your automotive investment and more.

Lifestyle

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10/02/2013 @ 9:39PM |20,166 views

Tesla Model S Catches Fire, Stock Price Sinks -- Updated

A Tesla Model S all-electric luxury sedan caught fire outside of Seattle after a collision with an unknown metallic object on Tuesday, the first such incident recorded to our knowledge. The Associated Press reports that the fire began in the vehicle’s battery pack, mounted beneath the passenger compartment floor, which created challenges for firefighters attempting to douse the flames. The Model S uses a large liquid cooled lithium-ion cell that uses similar chemistry to the batteries used in laptop computers.

Update: According to a report issued by the Kent Fire Department Regional Fire Authority obtained by the International Business Times, the water initially used to put out the blaze apparently fueled the flames, which prompted firefighters on the scene to instead use a dry chemical. After finding the battery pack still on fire, the report says first responders,”had to puncture multiple holes in the pack to apply water to the burning material in the battery,” subsequently cutting open the vehicle’s frame in order to extinguish it.

Fortunately the ensuing blaze was said to be limited to the car’s front trunk space and no injuries were reported.

The innovative upstart Silicon Valley automaker offered AutoblogGreen the following statement:

Yesterday, a Model S collided with a large metallic object in the middle of the road, causing significant damage to the vehicle. The car’s alert system signaled a problem and instructed the driver to pull over safely, which he did. No one was injured, and the sole occupant had sufficient time to exit the vehicle safely and call the authorities. Subsequently, a fire caused by the substantial damage sustained during the collision was contained to the front of the vehicle thanks to the design and construction of the vehicle and battery pack. All indications are that the fire never entered the interior cabin of the car. It was extinguished on-site by the fire department.

We assume a lengthy examination will follow, as this could potentially be a make or break issue for the company if the vehicle is found to be at fault. Remember, there’s no gasoline involved here and lithium-ion batteries already have a reputation for running hot and catching fire. Boeing’s 787 Dreamliner was grounded soon after its inaugural flights earier this year because of electrical fires traced to the plane’s lithium-ion batteries.

Not coincidentally, Tesla stock dropped by $12.05 to close Wednesday’s trading at $180.95. Update: Tesla shares were at $172.81 at day’s end on Thursday, which represents a further – yet modest, all things considered – 4.5 percent drop in value.
Here’s a video of the car on fire via –where else – You Tube: