Tesla shares hit by fire

<p>It is the third recent fire to affect a Tesla model.</p>

The share price of Tesla fell again yesterday (November 8th) after the latest fire involving one of the company's cars.

Stocks in the firm recently collapsed when founder Elon Musk revealed a battery shortage was affecting production of its vehicles.

The share price of Tesla fell by more than seven per cent on Thursday, following on from the 14 per cent dip recorded on Wednesday.

Tesla stated that the fire – the third to affect one of its cars in recent weeks – was the result of an accident.

Adam Jonas, an analyst with Morgan Stanley, explained the company's reputation could be damaged if US safety regulators launch a formal investigation into the firm's vehicles.

He explained that this "could raise near-term concerns to a higher level in terms of cost, image and production disruption".

Commenting on the falling production this week, Mr Musk explained the situation may not improve until early next year when a new supply deal with Panasonic comes into effect.

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