Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The U.S. National Highway Traffic Safety Administration announced the probe today in website post, saying it would look into the fire risks from the undercarriages striking objects. The probe involves 13,108 Model S vehicles.

US safety regulator is investigating Tesla Motors’ Model S electric car after a series of fire accidents, in a step that could lead to a recall of the company’s flagship model. Strong sales of “the safest car in America,” has transformed the car-maker from ambitious upstart to investor top stock. However, three battery fires over the past five weeks have stopped the ambitious rise in its share price.

In announcing the probe, NHTSA said both US incidents led to thermal runaway, a phenomenon found in the lithium-ion batteries on Boeing 787 Dreamliners that led to the plane’s grounding earlier this year.

Tesla Chief Executive Officer Elon Musk, who last week said “there’s definitely not going to be a recall,” said in a blog post hours before the filing that the company sought the probe to counter “false perceptions” about the car’s safety.

“While we think it is highly unlikely, if something is discovered that would result in a material improvement in occupant fire safety, we will immediately apply that change to new cars and offer it as a free retrofit to all existing cars,” Musk wrote in the blog post.

Since, the day of the first fire, shares in the car-maker have fallen 37% on worries of an investigation, recall, below-expectation sales numbers and comments from chief executive Elon Musk suggesting the company was overvalued.

NHTSA previously investigated fires in two other electric cars brands, the hybrid electric General Motors Chevrolet Volt and Fisker Automotive Inc.’s Karma plug-in. The Karma was recalled and GM voluntarily reinforced the battery packs on Volts, after one caught fire following a NHTSA crash test.

Meanwhile, California safety officials are investigating an industrial accident at Tesla’s plant that burned three workers last week.

According to Teslas CEO the world is faced with more important issues while the electric technology has been misinterpreted, Elon Musk emphasized on the need of sustainable transportation in order to diminish the risk of global climate changes.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Cypress share price down, to acquire fellow chipmaker SpansionCypress share price down, to acquire fellow chipmaker Spansion Cypress Semiconductor Corp is buying Spansion Inc in a $1.59-billion stock deal in order to create a company that will manufacture memory chips utilized in many consumer and business technologies.After the deal is completed the new company […]
  • USD/JPY peaks higher on diverging central banks’ policiesUSD/JPY peaks higher on diverging central banks’ policies The yen declined against the US dollar on Tuesday after a report by BoJ showed progress in the central banks monetary stimulus, contrasting from the Federal Reserve policy, which is expected to end its bond-purchasing program at the end of the […]
  • Forex Market: GBP/CAD daily forecastForex Market: GBP/CAD daily forecast During yesterday’s trading session GBP/CAD traded within the range of 1.8176-1.8275 and closed at 1.8232.At 7:29 GMT today GBP/CAD was losing 0.03% for the day to trade at 1.8215. The pair touched a daily low at 1.8207 at 7:24 […]
  • Rocket Internet AG aims to raise €750 million in IPORocket Internet AG aims to raise €750 million in IPO Germany-based Rocket Internet AG, an enterprise which invests, manages and expands internet-related businesses, revealed in an official statement that it plans to raise €750 million ($970 million) in its Initial Public Offering, planned for […]
  • Euro Struggles Against Pound as EUR/GBP Slides Toward Key SupportEuro Struggles Against Pound as EUR/GBP Slides Toward Key Support Key Moments EUR/GBP retreated after failing to clear resistance near 0.8740, trading close to two-month lows around 0.8705-0.8710. Technical indicators on the 4-hour chart showed mixed signals, with RSI at 41 and MACD only […]
  • Spot Gold plumbs 1-week low as Trade Court strikes Trump tariffsSpot Gold plumbs 1-week low as Trade Court strikes Trump tariffs Spot Gold hovered above a fresh 1-week low of $3,245.56 on Thursday, as diminished tariff risks undermined safe-haven demand.The US Court of International Trade found that President Trump had exceeded his authority to impose reciprocal […]