Tesla shares dip on car fire reports

<p>Reports of a fire in a Tesla car affected the firm’s share price.</p>

The share price of Tesla has been hit after reports one of the firm's cars caught fire.

Automobile blog Jalopnik first published the images of the Tesla's Model S electric sedan in flames and the company has admitted that the fire occurred.

However, the firm insists that the fire started after the driver ran over "an extremely large object". This denial was not enough to support shares in the company, which fell more than six per cent.

Liz Jarvis-Shean, a spokeswoman for Tesla, told the Associated Press news agency: "Every indication we have at this point is that the fire was a result of the collision and the damage sustained through that.''

The share price of Tesla fell by 6.2 per cent on the back of the reports, which is its largest daily drop in more than two months.

When the Nasdaq opens later today (October 3rd), stocks in the company will begin trading at 180.95, which is still close to the 52-week high of 194.50.

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