This is the dramatic moment onlookers smash a rear window on a crashed Tesla Model 3 after it was engulfed in flames with the driver still trapped inside.

According to local police, it was driver error that caused the accident in which the electric car crashed into a street sign and crash barrier on a busy road in Shanghai, China, in the late afternoon rush hour on May 14.

The driver was identified as Guo, 42, and the impact caused the fire, leaving him trapped inside.

The footage was captured by a car approaching the burning vehicle, and a nearby bus stopped, with a passenger using a hammer from the bus to smash the window.

They are seen pulling the glass and airbags away to reach the injured driver inside who is prevented from escaping by the fire and a broken door.

The people battling the smoke and flames to rescue the driver who suffered leg injuries were praised by eyewitnesses who noted they risked their lives as the vehicle with its electric batteries could have easily exploded at any stage.

A driver also took a fire extinguisher and sprayed it at the location of the fire in an attempt to extinguish it.

Subsequently, firefighters arrived at the scene and used professional tools to launch rescue operations.

After being pulled from the vehicle, Guo was taken to hospital and is expected eventually to make a full recovery although he remains hospitalised with leg injuries.

Tesla boss Elon Musk has recently been pushing for growth in China as the company seeks to use data from the country to drive the development of its self-driving system.