Manufacturing, Manufacturing Plant Electric Car Company Fire Snuffed Out By Sprinkler System (Palo Alto, CA) January 11, 2012 viking210 A one-alarm fire broke out Wednesday morning at Tesla Motors in Palo Alto, but the flames were extinguished by a sprinkler system, a fire official said. They found an alarm blaring and light smoke wafting from Building 23, Conn said. A sprinkler system, however, had snuffed out the fire.