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Another Model S Fire. Should Tesla Investors Worry?

Daniel Sparks
October 28, 2013

Yes, another fire.

When the first Model S caught fire, Tesla Motors' (NASDAQ: TSLA) Elon Musk was able to quickly calm investors in a carefully worded blog post. But will Musk's voice be as reaffirming after a second fire in less than a month's time?

The fire
The second fire began after a Tesla Model S driver smashed through a concrete wall and into a tree last week, according to Tesla in a statement confirming the incident on Monday morning. Mexican newspaper Progreso Hoy posted this video of the incident.

As the video made rounds on Monday, Tesla's stock dropped 4%.

Tesla says the driver is safe and has asked Tesla to "expedite delivery of his next Model S."

The statistics are still in Tesla's favor
Is this just a coincidence that two Model S vehicles have caught fire recently? Or is there seriously a defect with the Model S that causes it to catch fire so easily?

Fortunately, the answer to thi