Tesla shares fall again after Model S fire

Shares of Tesla Motors fell another 5 percent Thursday as investors in the high-flying company assessed the fallout from a fire in one of its $70,000 electric cars.

The fire began in the car’s battery after the driver hit metal debris. Firefighters extinguished the flames and no one was hurt.

Tesla says it’s the first fire in one of its cars. Experts say electric car fires are rare, and consumers should still consider buying them.

But the sight of flames engulfing the front end of a Model S on the side of a highway in the Seattle-area has been a jolt to investors. Tesla has been a Wall Street darling this year, selling more cars than expected and posting its first-ever profit.

Shares fell 6 percent Wednesday as video of the fire surfaced. The shares were down $8.75, or 4.8 percent, to $172.20 in afternoon trading Thursday. At that price, Tesla’s market value has dropped about $2.5 billion in the past two days.

Still, if an investor purchased a share of Tesla at $35 on Jan. 2, they’re sitting on a gain of more than 400 percent for the year.

Deutsche Bank analyst Rod Lache told investors Thursday that he views the fire as an isolated incident and still expects Tesla shares to reach $200.

More in Herald Business Journal

Camano artist mixes flask, paintings for successful cocktail

Art flasks prove popular as bachelorette gifts, birthday presents and wedding favors.

Pentagon inspector general praises secret $80 billion bomber

US Government Accountability Office in 2016 rejected a protest filed by Boeing-Lockheed Martin.

Everett’s Sentry Credit celebrates a quarter century in business

Sentry Credit Inc. in Everett is celebrating its 25th year in business.… Continue reading

Funko donates hundreds of Pop! Heroes to Christmas House

Everett’s toy and collectibles maker Funko has donated hundreds of its Pop!… Continue reading

Donate coats for Clothes for Kids of Snohomish County

Washington Energy Services is conducting a local coat drive to benefit Clothes… Continue reading

Seattle Premium Outlets extend hours over Thanksgiving holiday

Seattle Premium Outlets will be offering extended Black Friday shopping hours in… Continue reading

Equipment rental and sales business H&E opens Mukilteo shop

Company hopes to capitalize on construction occuring in northwest Washington.

New Chick-fil-A draws dozens of campers in Bothell

A second restaurant of the popular chain is opening on Thursday.

Tulalip Resort Casino to feature locally grown hazelnuts

The resort wanted to put a focus on meals created with the nut.

Most Read