Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Tesla investigates video of parked Model S exploding in Shanghai

Published 22/04/2019, 10:20
Updated 22/04/2019, 10:20
© Reuters. FILE PHOTO: Tesla logo is seen on a wheel rim during the media day for the Shanghai auto show

By Brenda Goh and Yilei Sun

SHANGHAI (Reuters) - U.S. electric vehicle (EV) maker Tesla Inc said it has sent a team to investigate a video on Chinese social media which showed a parked Tesla Model S car exploding, the latest in a string of fire incidents involving Tesla's cars.

The video, time stamped Sunday evening and widely shared on China's Twitter-like Weibo, shows the parked EV emit smoke and burst into flames seconds later. A video purportedly of the aftermath showed a line of three cars completely destroyed.

Reuters was not immediately able to verify the origins of the videos, which Weibo users said were taken in Shanghai.

The cause of the explosion could not be immediately ascertained from the videos.

"We immediately sent a team onsite and we're supporting local authorities to establish the facts. From what we know now, no one was harmed," Tesla said in a statement on Monday.

It declined comment further when contacted by Reuters.

There have been at least 14 instances of Tesla cars catching fire since 2013, with the majority occurring after a crash.

The automaker has said its EVs are about 10 times less likely to experience a fire than petrol-powered cars, based on its fleet of over 500,000 vehicles which have driven more than 10 billion miles. It did not specify whether the statistic referred to normal use or involving accidents.

REPUTATION

The latest incident comes as Tesla tries to push sales in China, where its prices were impacted by tit-for-tat tariffs imposed during Sino-U.S. trade tensions last year.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The automaker currently 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 impact of a trade war.

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.

Analysts said the latest fire incident would likely increase attention on the safety of EVs but was unlikely to have a significant impact on Tesla's sales or reputation in China while the cause was being investigated.

"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.

"Since its consumer base is not particularly conservative, and China is pushing the electric vehicle market, if this incident is just accidental, it will not have a big impact on Tesla," he said.

"Tesla self-ignites" was one of the most popular hashtags on Weibo on Monday, racking up over 20 million clicks. Some users urged the automaker to quickly find the cause, whereas others speculated over the impact to the value of Tesla cars currently on the road. Still more found humour in the situation.

"One lesson I learnt from the Shanghai self-exploding Tesla: Don't park your car next to a Tesla," said one commentator.

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 repair.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Nio has launched an investigation to determine the cause of the fire," Nio said, adding no one was harmed due to the incident.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.