By Chris Isidore and Peter Valdes-Dapena @CNNMoneyOctober 4, 2013: 12:30 PM ET
NEW YORK (CNNMoney)
Tesla Motors' shares were up in midday trading Friday, following a three-day slide that shaved more than 10% off the value of the high-flying stock.
The sell-off had been sparked by reports of a car fire and an analyst's downgrade. The stock may have been helped Friday by Tesla's confirmation that it is talks with Korea's Samsung on a deal that would give the electric car maker another battery supplier.
Finding an additional supply of batteries is a top priority for Tesla.
CEO Elon Musk has said that access to additional batteries would be the "main constraint on our production growth probably for a few years to come." Most of Tesla's batteries now come from Panasonic. Sanyo is the only other battery supplier.
Automatic alerts warned the driver to pull over, the statement said, and the fire began only after the driver was out of the vehicle. The fire eventually consumed much of the vehicle's front end.
"All indications are that the fire never entered the interior cabin of the car," Tesla said in its statement. "It was extinguished on-site by the fire department."
Tesla stock may be losing air
The Model S is a fully electric car with its battery pack housed in the floor of the vehicle. Tesla said the fire started when the metallic object directly hit one of the 16 modules within the Model S battery pack.
"Because each module within the battery pack is, by design, isolated by fire barriers to limit any potential damage, the fire in the battery pack was contained to a small section in the front of the vehicle," a spokeswoman said.