Tesla Shares Hit By Safety Investigation

The share price of Tesla Motors Inc, (TSLA) took a hit yesterday (November 18th) after it was announced that a safety investigation is being launched into its Model S electric cars.

After two fires involving the models in recent months, the US government's auto safety agency the National Highway Traffic Safety Administration stated that it will look into the incidents.

The body stated that it believes the fires were caused after debris struck the undercarriage of the vehicles, but the drivers were unhurt on each occasion.

Tesla's founder Elon Musk revealed in a blog post that the company had asked the government to investigate the safety record of its cars.

"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," he said.

Despite this, Tesla stocks dived by around ten per cent during yesterday's trading session.

In pre-market trading today ahead of the Nasdaq's opening, Tesla shares are 0.12 per cent down at 14:21 GMT.

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