Tesla investigation after the explosion of a car in China

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A short video of a surveillance footage posted on a Chinese social media site Weibo (WB) showed a white smoke emerging from what looks like a white Tesla car parked in many places in Shanghai. After a few seconds, the electric vehicle catches fire and the clip ends soon after.

The video, which was filmed just after 20:15. April 21, local time, seems to show a Tesla Model S sedan. It was posted on Chinese social media a few hours later and has since been widely shared.

You're here (TSLA) would not confirm any details except to say that he was investigating the incident alongside the Chinese authorities.

"We immediately sent a team on site and we help the local authorities to establish the facts." According to our current information, no one was injured, "CNN Business spokesman told CNN Business on Monday. You're here.

The clip drew a mixture of derision and indignation on Weibo. "Car owners require an explanation," writes user Miao Hongyang. "We will not tolerate that we endanger our safety in an instant and the fact that it ignites so quickly."

Another Weibo user, registered under your father's name, added, "One thing I learned from this incident: from now on, never park near a Tesla again."

China is huge for Tesla

This is not the first time that one of Tesla's cars has caught fire, but previous incidents often involved moving vehicles or damaged vehicles.

"It seems odd that the battery, without charge, burns alone," said Tu Le, founder of the consulting firm Sino Auto Insights.

Tesla previously stated that petrol cars were 10 times more likely to ignite than those powered by electric batteries.

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China is an extremely important market for Tesla. The country accounts for about 20% of the company's annual revenue, or more than $ 2 billion in revenue. But his share of this market is still minimal.

The company wants to boost sales in China with a new factory in Shanghai. Tesla hopes to be able to produce 500,000 cars each year on its premises.
But Tesla is also struggling with a slowdown in the Chinese economy, which has already hit foreign brands, including GM (GM) and Ford (F). Import tariffs resulting from the trade war with the United States resulted in a significant fluctuation of Tesla's prices in China.
It must also face stiff competition from Chinese players, such as BYD (BYDDF) and NIO (NIO).

Don Giolzetti contributed to this report.

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