Two people were killed and a further three injured when an out of control Tesla ploughed through a city's streets before slamming into a small truck and crashing into a building in a cloud of smoke.
Footage of the incident, which took place on November 5 in Chaozhou, China, shows the white Model Y vehicle careen at high speed through the busy area after its driver seemingly encountered problems trying to park.
The car can be seen slowly pulling into a roadside parking spot before suddenly accelerating back onto the road, reaching its maximum speed of 150km/h during the wild ride.
It struck two cyclists and two motorcyclists as it raced through the streets and nearly hit another person on a scooter, before finally slamming into the truck.
A motorcyclist and a high school student riding a bike died at the scene, while three others were injured including the Tesla driver himself.
Now the family of the 55-year old motorist has told local news outlets he lost control of the car as it failed to respond when he pressed the brake pedal while trying to park.
Elon Musk's electric car company remains sceptical about such a claim and has cautioned against believing 'rumours', adding it is still investigating the incident in order to get to the 'truth'.
In a statement it said the video showed the car's brake lights did not light up as it accelerated to its maximum speed of 150km/h, which would suggest the brakes weren't pressed.
Tesla added that this matched background data and that it would actively provide necessary assistance to police.
Local traffic officers, meanwhile, have ruled out the possibility of the car's owner driving under the influence of drugs and alcohol and noted that the vehicle would be tested.
It's not the first controversy to hit the company in China.
In 2016 Teslawas forced to remove the word "autopilot" and a Chinese term for "self-driving" from its country's website, after a driver in Beijing crashed in "autopilot" mode.
Although no-one was killed in that particular incident, the driver blamed the accident on the company, claiming the car maker had overplayed the autopilot function's capability and misled buyers.
A year later, a driver who became trapped inside a burning Model X car after the Falcon Wing doors failed to open, demanded the company paid her over £900,000 in compensation.
Lee Tada, the owner of the Model X, claimed her chauffeur was driving along the motorway at around 45mph in Guangzhou, China, when the car hit a concrete side-rail.
The car span around 180 degrees and collided head-first with a Ford Focus. She and her boyfriend, who were sitting in the back of the Model X, attempted to open the car's Falcon Wing doors, but she claims both were stuck.
The pair managed to exit through the front door just moments before the car burst into flames.
A spokesperson for Tesla has been contacted for comment.
