Tesla Shares Fall on Reports of Third Model S Fire

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Nov. 8 (Bloomberg) –- Bloomberg’s Alan Ohnsman discusses the impact on Tesla of Model S fires. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Been following the story.

Good to see you.

Talk to me about the tesla reaction.

There has not been a great deal of reaction so far.

They have kept fairly quiet and that had not been the case in some of the previous incidents.

They have sent a team to review the situation in tennessee.

There was no additional follow- up at this point but it is clear they are taking it seriously.

Is this a real problem?

They had three vehicle fires.

Gasoline can burn final by itself but this is not a problem unique to tesla.

That is not wrong.

This is a fairly high incident rate, it would seem so far.

Three reported fires in five weeks.

The company has only delivered about 16,000 cars in north america.

It is a member -- it is a number that is not normal.

Have you read the incident report from the fire department?

The fire was put out in the guy was safe, the firefighters had a really difficult time putting out the fire.

They were not able to figure it out and were pouring water on it and thought it was out and it reignited and spent hours.

Didn't they put it on jack's? yes, that is one thing that is new and different with plug- ins and ev's. these are chemical fires which is different than a traditional gasoline fire.

That is a new challenge, certainly, for some of the safety officials.

Emergency crews try to put this out and there are additional procedures that they will have to learn.

That is one thing that is different.

Gasoline is very combustible and makes an excellent fuel but there is risk there.

We just don't know a lot yet about the specifics and what has caused these.

The circumstances and two of the incidents seemed somewhat similar where physical damage occurred to the battery casing, resulting in a fire.

We just don't have a detailed report at this point.

One analyst came up with some interesting numbers about the frequency of vehicle fires.

He used information from the department of transportation and what he found was that he found a metric about how many miles driven so for all cars, about every 46 miles, there is a fire.

For tesla, it looks like every 38 million miles.

The chevyleaf and the volt have had no fires and i wonder if that tells us something about the tesla, about electric guitars -- about electric cars, or if there is not enough information.

In the case of volt, in crash testing, there were some fire incidents.

They did not involve -- the circumstances were different and general motors decided to go ahead and strengthen the battery casing.

The leaf did not have fire incidents but it had some battery packs that turned out to be not quite as robust in the early models.

Those were replaced.

This is not necessarily -- it is too early to say if tesla has a problem -- these are new products.

They are new in the market.

A lot of the issues we won't understand until a lot of miles have been driven and until the vehicle suite grows.

We need more data to see.

Gasoline has been around for a century as the primary vehicle fuel and batteries have not been around in large number as a vehicle fuel until the last couple of years.

That's interesting stuff.

This text has been automatically generated. It may not be 100% accurate.

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