November 19, 2013

U.S. launches investigation into Tesla Model S fires


U.S. auto safety regulators have launched an investigation into electric sports car maker Tesla Motors Inc's (TSLA.O) luxury Model S sedan after three car fires in six weeks, and Tesla announced it is raising the vehicle's ground clearance.

Tesla shares fell in premarket trading on Tuesday following the news but they were up 3.5 percent in early-afternoon dealings.

The U.S. National Highway Traffic Safety Administration has opened a preliminary evaluation of the risks associated with highway debris striking the underbody of the 2013 Model S, the agency said on its website on Tuesday. (r.reuters.com/cys74v)