Video of parked Tesla car exploding will be investigated by the American company

A video on Chinese social media showing a parked Tesla car exploding will be investigated by the American electric car maker.

Tesla says it had sent a team to investigate the video, which viewed over five million times and widely shared on China's Twitter-like Weibo.

It showed a parked Tesla S starting to emit smoke from its bonnet before exploding and bursting into flames, damaging surrounding cars.

A time stamp on the video showed that incident happened on Sunday evening.

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

"After finding out about this incident in Shanghai, we immediately sent a team to the scene," Tesla said on its official Weibo account.

"We are currently contacting relevant departments to understand the situation. Based on current information, no one was hurt."

The incident comes as Tesla has been trying to revive its sales in China which have been hit hard by Sino-US trade tensions.

The company currently imports all the cars it sells in China, but is building a factory in Shanghai that will manufacture Model 3 cars in the initial phase and help it minimise the impact of the trade war and tariffs.

In March, Tesla also encountered a hiccup when Shanghai customs temporarily suspended clearance for a batch of Tesla's Model 3 cars citing a labeling issue.

Reuters