Car fires in China spur investigations by Tesla and its rival NIO

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Car fires in China spur investigations by Tesla and its rival NIO
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Tesla Inc. and its Chinese competitor NIO Inc. are looking into fires involving their vehicles, as videos of a car bursting into flames circulate on social media in the world’s largest electric auto market.

A white sedan bearing Tesla’s logo was caught on a video taken from a closed-circuit camera emitting smoke from both sides Sunday evening before catching fire. A team from Tesla has been sent to Shanghai to look into the incident and is in touch with local authorities, the carmaker said on its official Weibo account Monday. As far as Tesla is aware, there were no casualties.

The incidents could fuel concern over the safety of EVs in China, which has thrown its weight behind the shift away from the internal combustion engine to combat pollution. Electric cars are increasingly using high-density lithium batteries to extend their driving ranges as demand for the vehicles climbs. A mix of subsidies and favorable policies helped push Chinese EV sales beyond 1 million units last year, luring a raft of newcomers to the business.

An electric car under the Zhidou brand part-owned by Chinese billionaire Li Shufu’s Zhejiang Geely Holding Group Co. burst into flames on the road in September, according to a TV station in the eastern city of Hangzhou. In August, a plug-in hybrid SUV under BYD Co.’s Song brand caught fire while it was parked at the gate of Shanghai’s Hongqiao railway station, according to thepaper.cn.

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