It wasn’t long ago that the Tesla Model S was the very definition of a car that could not do anything wrong in the eyes of its buyers and critics alike. Discounting the price tag that ruled most of us out of the running of course, it was seen as a flawless marvel of modern design and cutting-edge technology at its finest – all with a safety record that was second to none.
That is, until they started exploding left, right and center.
Today brings news of the third Tesla Model S fire in little over a single month, which again left the vehicle largely obliterated. The latest incident occurred in Tennessee, where the car apparently hit a large piece of debris in the road which caused a fire to break out after the care came to a halt.
According to Tesla, the fire was in no way caused by any kind of fault with the car or its electric engine, but came down to the debris in the road that could have caused any car to have a serious accident.
Nevertheless, the report once again triggered a steep decline in Tesla share values on Thursday – a further 7% dive being reported after Wednesday’s mediocre earnings report led to losses of 14%.
Between July and December, Tesla’s losses totaled a damaging $38 million – something that wasn’t responded to kindly by shareholders.
Speaking after the accident, the driver of the Tesla Model S stated that a tow-bar was lying in the middle of the road and subsequently collided with the car. The damage caused by the object led to a fire which would quickly go on to engulf the entire front-end of the vehicle.
On a positive note for Tesla, highway safety experts have to vindicated the car itself of any responsibility for any of the reported fires – all of which are said to have resulted from accidents or collisions. Nevertheless, damage to the automaker’s reputation is taking its toll.
Industry experts stated that despite the fact that most of the reported instances of Tesla Model S fires to date have been triggered by accidents rather than vehicle faults, investors haven’t responded favorably and fear a detrimental impact on the automaker’s reputation.
“For a company with a stock price based as much or more on image than financials, those recurring headlines are highly damaging,” said Karl Brauer of Kelley Blue Book.