Tesla Motors Inc. (NASDAQ:TSLA), the electric-car company led by Elon Musk, rebounded after three days of losses in the wake of a YouTube video showing a Model S sedan engulfed in flames after crashing into a large object near Seattle, Washington.
Tesla shares gained 3.2 percent to $178.93 at 1:53 p.m. in New York.
Tesla, which has seen its market value quintuple to above $21 billion this year, retreated 11 percent in the past three days following the circulation of the video.
The video posted on YouTube shows the front of the $70,000 Tesla Model S in flames. It was first posted on car fan site Jalopnik which wrote that it came from a reader.
Today's increase came after some analysts told investors that the fire would hurt the short-term stock price, but they don't expect long-term consequences.
The fire, which happened on Tuesday, began in a Model S lithium-ion battery pack after the driver hit some debris on a freeway near Seattle. The debris somehow punctured a battery cell, which started the blaze.
Firefighters had trouble putting it out with water and had to cut their way into the battery to extinguish the flames with dry powder.
The car told the driver of problems shortly after the crash, and he pulled off the freeway and got out unharmed.
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