Reuters reports that the National Highway Transportation Safety Administration [NHTSA] on Friday said it closed a formal investigation into a series of fire accidents involving Tesla Motors’ (TSLA) popular Model S sedans.
The NHTSA said the closing of the probe “does not constitute a finding by the agency that a safety-related defect does not exist”. The U.S. auto safety regulator also said it “reserves the right to take further action if warranted by new circumstances.”
NHTSA launched an investigations into Tesla’s Model S luxury electric cars in November after three cars caught fire in six weeks. The fires, which have become an issue for the company, contributed to a 40% nosedive in the value of TSLA since printing a high of $193 a share on Oct. 1, wiping over $8 billion off the company’s market cap.
Tesla shares are up $5.67, or 2.73%, at $212.99 in early trading Friday.