Tesla Blames Battery-Module Fault for Causing Shanghai Auto Fire

Tesla Inc. said an isolated battery fault caused a Model S to catch fire in a Shanghai parking lot two months ago, as the U.S. electric-car maker tries to ease safety concerns in its second-largest market.

A joint investigation with experts and executives from China and the U.S. found no “systematic defect” with the car, Tesla said in a statement June 28. An initial finding shows a malfunction with a single battery module at the front of the vehicle caused the incident, the company said.

A safety system was working as expected, which helped keep the rest of the battery ...