Why the Tesla Fire Was No Big Deal

By John Rosevear – Oct 7, 2013 at 5:59PM

NASDAQ: TSLA

Tesla

Market Cap

$477B

Today's Change

(-3.55%) -$5.52

Current Price

$149.93

Price as of April 18, 2024, 4:00 p.m. ET

A fire in a Tesla Model S alarmed investors and sent Tesla's stock plummeting last week. But a Motley Fool analyst thinks the fire was no big deal. Here's why.

The Tesla Model S has been hailed as a very safe -- and very fun to drive -- electric sedan. Last week's fire shouldn't dent its reputation for safety, a Fool analyst argues. Photo credit: Tesla Motors

Shares of Tesla Motors (TSLA -3.55%) took a nosedive last week after a YouTube video showing a burning Tesla Model S was brought to investors' attention. The video, which showed a Model S engulfed in flames after hitting an object in the road, fed long-standing concerns about the safety of electric cars -- and led quite a few Tesla investors to consider abandoning the stock.

Not to worry, says Motley Fool contributor John Rosevear. In this video, he explains why the Model S fire was no big deal -- and why Tesla's response to the incident speaks well for the company's management.

Fool contributor John Rosevear has no position in any stocks mentioned. You can connect with him on Twitter at @jrosevear. The Motley Fool recommends and owns shares of Tesla Motors. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.