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Regulators launch probe of Tesla

Tuesday, November 19, 2013 - 00:57

Nov. 19 - U.S. regulators are investigating Tesla's Model S sedans after three fires in six weeks. Fred Katayama reports.

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U.S. regulators have launched an investigation into Tesla's electric Model S sedans. This follows three highly publicized fires in six weeks. Two of them resulted after the cars ran over metallic debris that punctured the battery compartment, and that's what regulators will examine. Probes can lead to recalls. The news drove Tesla's high-flying stock lower at the market open, but then it bounced back. It has fallen 37 percent since the report of the first crash October 2nd. On Monday, Tesla CEO Elon Musk said in a blog that he was taking several steps. He raised the car's ground clearance to reduce the chances of hitting roadside debris. And he altered Tesla's warranty policy to cover damages due to fire. But Musk insisted that the model S is the safest car. He says motorists are four and a half times more likely to experience a fire in a gasoline car than a Model S.

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Regulators launch probe of Tesla

Tuesday, November 19, 2013 - 00:57