Tesla investigating incident of vehicle catching fire in China

Tesla investigating incident of vehicle catching fire in China

Tesla is sending an investigative team to a Shanghai parking garage to see if it can determine what caused a Model S electric vehicle to explode into flames over the weekend.

The video taken from a closed-circuit camera in the parking lot of a residential building showed a white sedan bearing Tesla's logo emitting smoke from both sides of the vehicle before catching fire Sunday evening. "This happened today in Shanghai, China 1st generation Tesla Model S caught Fire _ underground car park.#Tesla #TeslaChina #ModelS #Fire #China #Shanghai #特斯拉 #中国 $TSLA".

Shares of Tesla were down less than 2 percent at $268.5 in trading before the bell.

"After finding out about this incident in Shanghai, we immediately sent a team to the scene. From what we know now, no one was harmed", said a Tesla China spokesperson in an email statement.

It declined to comment further when contacted by Reuters. "Based on current information, no one was hurt", Tesla wrote on Weibo, the main Chinese social media site.

In March, Tesla was also on the receiving end of a labelling mix-up at Shanghai customs that led to a temporary suspension of clearance for a batch of Model 3 cars.

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The company wants to supercharge sales in China with a new factory in Shanghai.

Good or bad, negative or positive I will post anything about Tesla or EVs in China.

"Tesla had fire incidents before, but they didn't have a big impact on its reputation in China", said analyst Alan Kang at LMC Automotive.

"Tesla self-ignites" was one of the most popular hashtags on Weibo on Monday, racking up over 20 million clicks. I suspect the auto may have been damaged in some way before it was parked, but even so, no damage should result in a battery exploding.

This isn't the first time one of Tesla's cars has appeared to burst into flames, but previous incidents often involved moving vehicles or vehicles that had crashed.

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