It’s been a positive week for investors concerned about Tesla Motors (TSLA). The National Highway Transport Safety Administration (NHTSA) reaffirmed its five-star safety rating on Tesla’s Model S electric vehicle. The carmaker released a statement right after that, confirming the reiterated rating of the NHTSA.
The news is reassuring for investors and Tesla fans, given the recent concerns over battery fires that have plagued the Model S. Tesla shares are up more than 6% since then, to close at $151.4, and despite the fact that the statement also mentioned that the Model S was still under investigation by the NHTSA for the battery fire incidents.
The share price of Tesla Motors has dropped by almost a third from its peak of $193 in early October, after three battery fires were reported in a span of six weeks. The fires were caused by a rupture in the battery enclosures. Two of those incidents occurred state-side, while the third was in Mexico. That incident is not under investigation since it was the result of the vehicle hitting a concrete barrier. CEO Elon Musk has repeatedly stated that owners of the Model S are five times less likely to experience a vehicle fire than owners of an average gasoline car.
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