Why Investors Slammed the Brakes on Tesla Stock Today

For obvious reasons, auto companies depend heavily on production for their success. So it was entirely understandable that investors would react negatively to a suspected case of arson near the site of one of 's (NASDAQ: TSLA) sprawling "gigafactories."

Following news of the incident, which looks as if it will shut the facility for at least several days, market players largely traded out of Tesla stock. It closed Tuesday almost 4% lower, a steeper decline than the 1% the S 500 index endured.

A fire broke consumed an electricity pylon close to Tesla's factory near Berlin, Germany. While the blaze didn't spread to the facility or cause injuries there, it did deprive the site of power, thus necessitating a work stoppage. According to reporting by Reuters on the incident, citing the electric-vehicle (EV) company, the damage caused will halt production until early next week at the least.

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Source Fool.com