South China Morning Post reported that the local fire department, posting surveillance footage of the incident on its Weibo account, said a Model S parked in an underground car parking in Xujiahui burst into flames a few seconds after smoke started billowing from the bottom of a car.

Sales of new U.S. homes increased 4.5% in March, the third straight monthly gain as the housing market appears to be cautiously recovering from a mortgage-rate spike last year that caused homebuying to slump. The Commerce Department said Tuesday that new homes sold at a seasonally adjusted annual...