Tesla investigates after video allegedly shows Model S car exploding in China

A Tesla Model 3 car is displayed during a media preview at the Auto China 2018 motor show in Beijing China

Tesla says investigating car explosion in Shanghai

Musk and Tesla have faced a range of challenges over the past year as one of the leaders in electric vehicle technology sought to ramp up production, deliveries and sales of the Model 3 sedan seen as crucial to its long-term profitability. 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. "From what we know now, no one was harmed", Tesla said in a statement. "Jeopardizing our safety in a moment's instant and the fact it ignited so quickly is something we will not tolerate".

Tesla's lithium-ion batteries have reportedly caught fire in at least five cases both as a result of a collision as well as when parked.

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There are no known casualties at this time, the electric vehicle company said in a Chinese-language post on Weibo, China's version of Twitter. For now, Tesla has had to rely on exporting its cars to China, though it is in the midst of building its first overseas plant in Shanghai in the hope of minimizing the impact of tariffs.

After the incident with a Model X catching fire for the second time in Pittsburgh last week and the apparent explosion of the Crew Dragon during a fire test in Cape Canaveral over the weekend, news a Model S spontaneously combusting in a Shanghai parking lot surfaced on the Internet this weekend.

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

But Tesla is also grappling with a slowdown in the Chinese economy, which has already hit foreign brands including GM and Ford.

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It also has to contend with heavy competition from Chinese players, such as BYD and NIO.

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