Video has emerged of a Tesla Model S bursting into flames after an accident involving a woman who escaped unharmed. Her car reportedly hit some debris on the roadway, causing the car’s electric battery to ignite. The battery is a lithium-ion chemistry, similar to the ones used in laptops and phones.
Shares of the Wall Street darling were burned as well, suffering a 6.2% drop after the video emerged of the sedan on fire. Tesla Motors lost $12.05 to close at $180.95 for the stock’s biggest one-day decline since July 16. Some analysts believe that there is very little short-term upside to Tesla motors, and this incident demonstrates why. Tesla’s market value has dropped about $2.5 billion in the past two days.
The car costs $70,000. That’s a very expensive bonfire.