Shares of electric car maker Tesla rocketed on Christmas Eve after the U.S. National Highway Traffic Safety Administration (NHTSA) reaffirmed the 5-star safety rating of the Tesla Model S.
The NHTSA re-affirmed, Monday, the five-star rating for the Tesla Model S in every category possible, the highest rating awarded by the agency.
The Model S, which is Tesla's fully electric luxury sedan, was recently at the center of debate after three cars caught fire in separate incidents within a span of just two months. While NHTSA is still investigating the causes behind the accidents that caused Model S to burst into flames, the German Federal Motor Transport Authority, Kraftfahrt-Bundesamt (KBA), recently completed its review of the Model S fire incidents and confirmed that it did not find any manufacturer-related defects or need for further action.
Despite the fire incidents, it seems that overall owners of the Model S remain happy as the car topped Consumer Reports' latest owner satisfaction survey by receiving an owner satisfaction score of 99 out of 100 in November this year. The score is the highest the magazine has seen in several years.
Tesla also took the opportunity to reiterate that its most popular sedan Model S, which has a base price of $70,000, is safe and is less likely to catch a fire when compared to other cars.
"It is worth noting that a Tesla vehicle is over five times less likely to experience a fire than the average gasoline car and that there have been zero serious injuries or deaths for any reason ever, fire or otherwise, in a Model S. Over the course of more than 100 million miles driven in almost every possible terrain, weather and crash conditions, the Tesla Model S has consistently protected its driver and passengers, achieving the best safety track record of any car on the road," per a Tesla statement.
The American car maker has already started selling the Model S in Europe and is also expected to start selling the sedan in China from 2014.
The company's shares rose by 5.48 percent and closed at $151.41 on Tuesday, December 24 on the Nasdaq.
