Local fire departments are investigating the cause of a Tesla Model 3 vehicle which caught fire inside of a residential parking garage in Shanghai on Tuesday.

Why it matters: As Teslaโ€™s locally built models take off in the Chinese market, the vehicle blaze, which has attracted a remarkable amount of media coverage, could hamper more widespread EV adoption.

Details: Tesla confirmed to Chinese media on Wednesday that one of its Model 3 vehicles burst into flames in Shanghai on Tuesday night. The owner reportedly drove the sedan into an underground garage, struck a manhole cover at a very low speed, and saw flames coming out of the carโ€™s floorpan after exiting the vehicle.

  • The vehicle then โ€œexploded,โ€ though the driver managed to avoid injury, according to state-owned media, The Paper. Other media reported four explosions in total.
  • A Weibo user going by the handle โ€œZhou Wanjun,โ€ also a Tesla owner, arrived at the scene after the fire was extinguished. He told TechNode that a witness he spoke with had watched several fire trucks arrive as the fire intensified. Zhou firstย postedย to the Chinese microblogging site on Monday a photo of the car showing extensive damage.
  • Firefighters were quickly called to the scene and controlled the fire, after the owner and parking garage security staff failed to extinguish the fire, according to a Chinese media report. No one was injured.
  • The body of the car was badly burned as a result of the fire reaching its interior cabin.
  • An initial investigation indicated that the collision with the manhole cover could have caused significant damage to the vehicle and triggered the subsequent incident, according to a company statement to Chinese media.
  • The type of battery pack in the vehicle is still unknown, but Teslaโ€™s Chinese battery partner, CATL, on Wednesday denied any involvement in the car fire, reported National Business Daily (in Chinese).

Context: The vehicle blaze has prompted concern over a possible design flaw or quality issue in Teslaโ€™s locally built cars, with some saying a low-speed collision to the chassis of a vehicle is an unlikely cause of a battery fire.

  • Tesla in early 2019 reported that one of its imported Model S vehicles caught fire in a Shanghai parking garage and blamed the fire on a battery short circuit.
  • Teslaโ€™s locally made Model 3 was China’s top-selling electric car last year, with deliveries of 137,459 units. General Motorsโ€™ Wuling Hongguang Mini EV followed close behind, according to figures from China Passenger Car Association.
  • Tesla did not respond to TechNodeโ€™s request for comment.

Updated: additional information about incident added to “Details” section.

Jill Shen was TechNode's auto tech reporter until August 2025. She currently covers Chinese AI and EV as a freelancer. Connect with her via e-mail: jill_shen_sh@icloud.com or Twitter: @jill_shen_sh