Tesla Shares Fall As Car Catches Fire!

http://www.bbc.co.uk/news/business-24377350

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

180,000 cars catch fire in the United states every year, therefore a single car to catch fire that injured no one should not cause much attention. However, this particular car happened to be a Tesla Model S. Tesla Motors is a car manufacturer built around electrical cars. The reason that this car model catching on fire caught the eye off so many due to the fact that its batteries might have been to blame, which is a danger for multiple cars.No one was injured during the crash and the cause of the fire is still unknown. However, the shares in Tesla took a 6.2% fall after this incident; the largest one day decline since July.

This type of event was expected by Tesla due to the nature of the lithium-ion batteries, this has always been a worry or issue that Tesla had to deal with. There is no certain sign of faulty batteries in any other Tesla cars, however they must be careful as another fire or another incident may cause an even larger decrease in share prices. This would harm many of the stakeholders and may lead to large recovery costs. Therefore, contingency planning is needed immediately and appropriately.