A Tesla Inc (NASDAQ: TSLA) Model 3 car exploded in an underground residential parking garage in Shanghai, China, on Tuesday, CNBC reported citing Chinese media.
What Happened: Reportedly, there were no injuries or casualties on the accident site. Tesla’s Shanghai-based unit told in a statement that preliminary analysis suggests that the Model 3 combustion was caused by a damaged battery pack from an impact on the car’s underside.
Yicai Global reports that Tesla is cooperating with the fire department’s investigations and helping the owner with the insurance claim.
It is unknown if the battery-pack was manufactured locally or imported. Chinese battery manufacturer, Contemporary Amperex Technology, told local state media that they did not manufacture the exploded battery pack.
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Why It Matters: This is not the first Tesla car to burst into flames. In April 2019, a similar incident took place in Shanghai, CNBC noted.
Tesla’s cars have come under scrutiny for various reasons like their self-driving technology, Model X crash in South Korea, Model S X MCU failures, recall over the improperly attached roof.
This week, Tesla began Model Y SUV deliveries in China. The Elon Musk-led company will start operations in India soon.
Price Action: TSLA shares closed 0.70% higher at $850.45 on Tuesday.