Viral Video Causes $3 Billion Loss In Tesla Market Value

A video that went viral of a burning Tesla electric car has emerged as a public relations nightmare for the company, analysts said today, as the electric car maker lost as much as $3 billion in market value two days after the incident in Washington state.

Tesla Motors Inc. has confirmed that the car caught fire after the driver ran over a large metallic object on Tuesday morning just south of Seattle, causing extensive damage to the front end of the Model S sedan. Emergency officials at the accident said the fire occurred in the electric vehicle's lithium-ion battery.

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randy3023 - 10/3/2013 5:34:36 PM

+1 Boost

Lots of cars burn when they hit things. This dumb video has little to do with the decline in stock price.

Tesla stock is down because the stock was overvalued and folks want to take profits and wait to hear some news and data which might shed light on the future of the company.

Right now, the company just makes cars for filthy rich people. Not much for investors to work with.

Need4Speed - 10/3/2013 8:11:01 PM

+1 Boost

Yeah...two days after this video is plastered over the media, people finally come to their senses and realize the company is overvalued.

tattedtwice - 10/3/2013 6:44:09 PM

+2 Boost

I have no doubt they will bounce back and recover. Heck if toyota cars can go on killing sprees thanks to unintended acceleration, and still keep selling even though they have zero merit, then surely a company that sells something as beautiful and advanced as the Model S will be okay too, especially since this wasn't caused by a design flaw.

reaganeatbrains - 10/4/2013 12:21:14 AM

+1 Boost

I see these Teslas ALL OVER Southern California. Tesla is here to stay.

HughJass - 10/4/2013 10:34:30 AM

+2 Boost

Typical America. Build something up just so they can knock it down. There's lots of money riding on Tesla's failure and this is just one bullet in many that are being fired at Tesla.

mini22 - 10/6/2013 2:01:39 PM

+1 Boost

Sounds to me like it would be a decent stock to buy now.