Tesla Motors Inc Caught in Flames

Within less than two month period Tesla Motors Inc (NASDAQ: TSLA) confirmed the third fire accident in its Model S electric vehicle. The drivers were able to get out safely and no injuries have been reported in either of the incidents. The latest was reported earlier this month in Tennessee whereas the other two fire incidents were reported in Seattle and Mexico.

Tesla Motors Inc (NASDAQ:TSLA)

While the motor company confirmed the fire incident on its website, it claimed the fire occurred because of an accident and was not a spontaneous event. Police were not sure on how fast the vehicle was going and the National Highway Traffic Safety Administration has been working with Tennessee police and the auto maker to collect as much evidence as possible about the incident to make sure whether any additional action is required.

Recall Not Required

Elon Musk, Co-founder and Chief Executive Officer at Tesla Motors Inc (NASDAQ:TSLA) recently confirmed while speaking at a New York Times DealBook conference that the automaker would not be recalling its Model S electric vehicle. Despite three vehicle fires in just under two months, the CEO alleged that the media coverage of the fires is misleading. The CEO stressed that no injuries have occurred in any of the fire incidents.

While videos of all three incidents have gone viral, the stock price of Tesla Motors Inc. has also been affected severely. At this time, the stock has plunged over 8% in today’s trade.

Even Daimler AG Ties won’t be affected

One of the world’s most successful automotive companies, pioneer of automotive engineering and the parent company of Mercedes-Benz, Daimler AG (OTN: DDAIF) said earlier this month to expand its cooperation with the U.S. based electric car maker,  Tesla Motors Inc (NASDAQ:TSLA) regardless of reported fire incidents with its electric vehicle. Bodo Uebber, the Chief Financial Officer of Daimler said at a press briefing that he has asked his people to look for other opportunities with Tesla and to look for more cooperation.

Currently, Tesla Motors Inc (NASDAQ:TSLA) is providing electric batteries and motors to Daimler for its new Mercedes-Benz B-Class and Smart Fortwo EV which will go on sale in the U.S. and Europe next year.

Daimler is in the middle of discussing potential strategies with Renault-Nissan towards building a next generation of compact vehicles in Mexico. However, Uebber mentioned that no decision has been made so far. Uebber added that despite being a late entrant, the company is eyeing to get a broader customer base for its compact cars.