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An all-electric Tesla Model S caught fire yesterday and it is beginning to create a storm for the US automaker.

The vehicle in question is reported to have been involved in a collision which caused it to catch fire. Firefighters battled to put the electric fire out, water only seemed to intensify the fire activity forcing them to use a dry chemical extinguisher.

Once the fire had been extinguished, firefighters removed the front end of the vehicle to find one of the battery packs still burning.

Fortunately, the driver exited the Model S before any injuries could be sustained.

The incident has clearly been seen by investors. Tesla shares fell as much as 9.1 percent on Wednesday following initial reports of the fire. They recovered slightly to close at $180.95 (6.2 percent down) in New York trading.

Gallery: Tesla Model S catches fire [video]

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