Shares of Tesla Motors tumbled on the Nasdaq market on Wednesday after pictures and videos circulated on the internet of a Model S vehicle engulfed in flames. The premium electric car maker confirmed that one of its cars caught fire after it struck a major metallic object on a road near Seattle and that it is investigating the details of the accident.
The Tesla news, however, failed to impact shares of Chinese e-car maker BYD Co. (01211.HK) in Hong Kong. BYD was up 0.7 percent in morning trading Thursday, roughly in line with the broad market gains.
BYD shares suffered setback in the past after similar fire incidents involving its e6 model in Shenzhen last year and a charging unit problem earlier this year, but the counter bounced back quickly on the back of improving operating results and the Chinese government’s fresh new-energy car subsidies.
In year to date, BYD has chalked up a 56 percent gain to figure among the best performers in the sector. Meanwhile, one should note that despite the plunge overnight, Tesla shares are still up more than 400 percent this year.
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