Tesla investigating apparent explosion of parked vehicle in Shanghai

The incident comes as Tesla has been trying to revive its sales in China which have been hit hard by Sino-US trade tensions

The incident comes as Tesla has been trying to revive its sales in China which have been hit hard by Sino-US trade tensions

Tesla is investigating after one of its vehicles appeared to explode in China.

According to Fox Business, a video of the incident surfaces on a Chinese social media platform called Weibo on Sunday. For now, there isn't a simple explanation as to why this happened, but Tesla has confirmed it is investigating to figure out what exactly went wrong.

"After learning about the accident that occurred in Shanghai, we sent the team to the scene last night", Tesla wrote (according to a Google translation). "From what we know now, no one was harmed", Tesla said in a statement.

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The clip attracted a mix of derision and outrage on Weibo.

"We remain encouraged by Tesla's vision and future growth prospects, but there is increased uncertainty around near-term demand versus previous bullish forecasts and growth can not stall for a growth company", Evercore analysts wrote in their note downgrading the shares. "Jeopardizing our safety in a moment's instant and the fact it ignited so quickly is something we will not tolerate". The rest saw parked Tesla set on fire by their batteries.

In a separate, unrelated incident, Tesla's rival in China, Nio, said in a social media post that an ES8 electric sport utility vehicle caught fire on Monday in a Nio service centre in the central city of Xian while under fix.

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"It seems unusual that the battery, not charging, would combust on its own", said Tu Le, founder of consultant firm Sino Auto Insights. A few months earlier, the auto firm had to recall 14,000 Model S cars that had been made with faulty airbags from Japanese company Takata. China's government authority, the State Administration for Market Regulation, recalled more than 130,000 cars a year ago and is calling for more oversight on the quality of electrified vehicles. But its share of this market is still tiny.

The company is building its first overseas vehicle factory in Shanghai to ramp up annual production, tapping into the world's biggest auto market and avoiding some of the impact of Sino-US trade tensions. Tesla eventually hopes to produce 500,000 cars at the facility every year.

Tesla's Chinese ambitions have also been hampered by the trade war between Washington and Beijing.

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