Tesla spontaneously combusts in Shanghai parking garage

Tesla Says Investigating Apparent Explosion of Model S Car in China

Tesla spontaneously combusts in Shanghai parking garage

It was not immediately clear which Tesla model was affected, but reports indicated the vehicle was parked at the time of the fire.

Tesla did not confirm the vehicle model but reports identified it as a Model S.

The video showed smoke rising from a parked, white vehicle and seconds later it bursts into flames.

Shares of Tesla were down less than 2 percent at $268.5 in trading before the bell. "From what we know now, no one was harmed", Tesla said in a statement on Monday. The incident could add to concern about the safety of electric vehicles using high energy density lithium batteries to extend driving ranges, as rapid expansion of China's EV market pushed sales past 1 million units previous year.

In March, a labeling mistake forced customs officers in Shanghai to suspend clearance for Tesla cars.

The automaker now imports all the cars it sells in China, but is building a factory in Shanghai that will initially make its Model 3 and help reduce the hit of a trade war.

"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.

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

The automaker claims that its electric vehicles are about 10 times less likely to catch on fire than gasoline-powered cars, based on studies conducted on their fleet of 500,000 cars that have driven a combined 10 billion miles. Both companies are investigating the cause of the fires.

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