Tesla's Model S is under fire, literally, after the electric car caught a fire, the third in a span of five weeks.
The current incident occurred on Wednesday, November 6, in Tennessee after the car ran over a tow bar new Smyrna, Tennessee and burst into flames. Apparently, the tow hitch in the road punctured the car's battery compartment and led to the fire.
Reportedly, the previous two incidents were the result of an accident and not a spontaneous fire
In the latest incident, the driver, Juris Shibayama, was uninjured and was able to get out of the Model S safely. Tesla is looking into the incident and investigating the cause.
"We have been in contact with the driver, who was not injured and believes the car saved his life. Our team is on its way to Tennessee to learn more about what happened in the accident. We will provide more information when we're able to do so," said Elizabeth Jarvis-Shean, Tesla's director of global communications.
Questions have been raised pertaining to the frequency of the fires, especially considering the small number of Tesla cars on road.
"I do agree there is probably a higher likelihood of gas catching on fire, but this does raise a little bit of a question mark around that," said Ben Kallo, senior research analyst with Robert W. Baird & Co.
The National Highway Traffic Safety Administration (NHTSA) is also gathering information on the fire.
"NHTSA will contact the local authorities who are looking into the incident to determine if there are vehicle safety implications that merit agency action," said NHTSA spokeswoman Karen Aldana.
Additionally, investors are worried about the impact of the incidents on the firm's fortunes.
"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, senior analyst with Kelley Blue Book.
Tesla's shares fell more than 7 percent on Thursday, November 7, after a 14 percent fall on Wednesday, November 6, when the company reported that it made a net loss of $38 million in Q3 2013.
On Friday, the shares ended trading at $139.95, down 1.30 percent.
