Tesla shares drop for a third straight day
No injuries were reported in a Tennessee incident in which a driver hit road debris.
By Christopher Freeburn
Shares of Tesla Motors (TSLA) slumped more than 4% in Friday trading in the wake of reports of a third fire involving one of its pricey electric cars.
In the latest incident, a driver hit road debris near Smyrna, Tenn., sparking a fire in his Model S. On Thursday, federal regulators signaled that they planned to investigate the fire, USA Today reports.
Federal authorities had previously declined to officially investigate the first fire, which was reported last month outside Seattle. In that incident, road debris was reported to have penetrated the battery casing in the vehicle's undercarriage.
In the wake of the Seattle incident, Tesla owners expressed confidence in their vehicles, dismissing the fire as a "one-off event." However, a second fire was recently reported in Mexico, after a Model S hit a wall.
None of the three incidents have resulted in driver injuries.
TSLA stock was already hurting this week after the company's Q3 earnings report. While profits more than doubled and beat analyst expectations, vehicle sales disappointed Wall Street forecasts, as did the company's earnings outlook. Including Friday's losses, TSLA is off roughly 17% for the week.
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