With the Tesla’s stock pushed down to 4 percent of its shares in the Wall Street, a video of the electric car park in China exploded which adds to the issue, as Tesla prepares to issue for a troubled first quarter of the year. Many brokerages already asked stockholders to leave the billionaire, Elon Musk’s projects. Evercore, one of the 12 brokerages, stopped its endorsements from selling its shares of the Silicon Valley, which raised its highest bearish sentiments to date.
Tesla and Musk have confronted a range of challenges being one of the leaders in electric car technology. As it sought to increase their Model 3 sedan production, sales and deliveries were seen to be vital for the longevity of its profits. With the struggles in the distribution of their Model S and X luxury cars, the company said that it already sent a team to help in the investigation of the video in the Chinese social media, showing their vehicles being involved in a string of fires.
The video with a time stamp on Sunday evening was widely shared in Weibo, China’s Twitter-like application, shows the parked car bursting into flames seconds later after emitting smokes. Another video surfaced which supposedly shows the aftermath of the explosion with three other vehicles wholly destroyed. It was reported that the location of the video was not yet verified; however, Weibo users said the video was taken in Shanghai.
Tesla said in a statement that they instantly responded by sending out a team onsite and is helping the local authorities to establish the facts. They also added that there was no one harmed during the said incident. There were no further comments as Tesla already declined. Since 2013, there have been 14 instances of Tesla cars catching fire with the majority of which happen after a crash. Roth Capital Analyst, Craig Irwin said via email that there are not a lot of good news for Tesla these days. He also added that the car fire is just another data point of the company’s continued difficulties.
On Wednesday, Tesla will release their first quarter results and was expected to post a loss after the launching of the cheaper Model 3 sedan with a value of $35,000. Evercore still remains encouraged with the vision and future of Tesla. However, there are still uncertainties for the company’s growth.