Tesla Model S fire tests support of investors
The video has gone viral, now the lovers and haters of Tesla are sounding off on what, if anything, the fire of a Model S means for the electric car company and its shareholders.
Shares of TSLA shed 4.2 percent Thursday to close at $173.31, after earlier falling as low as $168. The stock rebounded Friday, clawing back 4.4 percent, but still ended the week down 5.2 percent.
(Read more: Tesla Model S goes up in flames, shares tumble)
Despite the selloff, at least one analyst is reiterating her "buy" rating on Tesla.
Andrea James with Dougherty & Co. issued a note Thursday morning looking at the potential impact of the Model S fire. "Tesla does not intend to halt orders, so we see no near-term downside. Model S consumers tend to be well-informed, which mitigates the risk of canceled orders," James wrote.
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While investors focus on the fire, and video of it posted on websites, Tesla has taken possession of the 2012 Model S in question.
The company says the fire started in one of the battery cells after the car drove over a large metallic object, which penetrated the carriage of the car.
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In an official statement, Tesla described the incident: "The fire was caused by the direct impact of a large metallic object to one of the 16 modules within the Model S battery pack. Because each module within the battery pack is, by design, isolated by fire barriers to limit any potential damage, the fire in the battery pack was contained to a small section in the front of the vehicle."
Firefighters at the scene had to put the fire out several times since it would reignite after they appeared to have extinguished it, according to a spokesperson from the Kent, Wash., fire department. In all, the fire crews were on the scene more than two hours. It's unclear how much of that time actually involved firefighting.