Tesla stock skids after Model S catches fire

Tesla Model S in Signature Red.
Tesla

DETROIT The stock price of electric car maker Tesla Motors (TSLA) sank Wednesday after an Internet video was posted of one its vehicles on fire.

Shares of Tesla Motors fell more than 6 percent to close $180.95. It was the stock's biggest one-day decline since July 16.

The automobile site Jalopnik.com posted the video that it says was taken by a reader near Seattle. The video shows the front of a Tesla Model S in flames.

In a statement issued Wednesday, Tesla said the fire was caused by "substantial damage" to the car when the driver hit a large metal object in the road. The flames, the company said, were contained to the front of the $70,000 vehicle due to its design and construction.

"All indications are that the fire never entered the interior cabin of the car. It was extinguished on-site by the fire department," the statement said.

Tesla shares have risen more than 400 percent since the start of the year. In August, Tesla CEO Elon Musksaid that the National Highway Traffic Safety Administration had given his Model S sedan the highest safety rating in its history of testing cars.

Earlier this year the Model S also tied for the highest score ever recorded in Consumer Reports magazine's annual automotive ranking.