Author Topic: Tesla Loses Up To $3 Billion In Market Value After Video Of Burning Car  (Read 440 times)

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Offline Carling

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http://www.huffingtonpost.com/2013/10/03/tesla-burning-car-loses-3-billion_n_4039456.html

<a href="http://www.youtube.com/watch?v=q0kjI08n4fg" target="_blank" class="aeva_link bbc_link new_win">http://www.youtube.com/watch?v=q0kjI08n4fg</a>


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DETROIT (Reuters) - A video that went viral of a burning Tesla electric car has emerged as a public relations nightmare for the company, analysts said Thursday, as the "green car" maker lost as much as $3 billion in market value two days after the incident in Washington state.

Tesla Motors Inc has confirmed that the car caught fire after the driver ran over a large metallic object on Tuesday morning just south of Seattle, causing extensive damage to the front end of the Model S sedan. Emergency officials at the accident said the fire occurred in the electric vehicle's lithium-ion battery.

It was the latest in a string of problems for lithium-ion batteries, which are used heavily in EVs sold by various automakers. However, the battery fire was the first for Tesla, the California-based EV maker founded by billionaire Elon Musk.

The fire and resulting publicity sparked a PR nightmare for a company that only makes electric cars, as opposed to mainstream automakers like General Motors Co that derive only a small percentage of sales from EVs, analysts said.

"The bar is much higher for Tesla," said James Albertine, analyst at Stifel, Nicolaus & Co, who has a "hold" rating on Tesla shares.

"Tesla cannot weather a sustained onslaught of consumer complaints and incidents that could potentially dent the demand curve for the next vehicle."

Before the incident, Tesla's stock had soared almost sixfold this year. On Thursday the shares fell as much as 7.2 percent and were still down 3.7 percent at $174.32 in late. 

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Trump has created a cult and looks more and more like Hitler every day.
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Offline Carling

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Analysts for research firm Kelley Blue Book said the road debris likely compromised the vehicle's cooling system, leading to the fire. They also said the current shutdown of the U.S. government would hamper any investigation.

No need to trust anything that Kelley Blue Book prints anymore.   :seeya:
Trump has created a cult and looks more and more like Hitler every day.
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