A Tesla cybertruck explosion outside one of Donald Trump’s US hotels is being investigated as a potential terror attack.

The driver, who was inside the vehicle when it caught fire, died in the incident on New Year’s Day and seven other people were injured.

The blast happened as the truck was just outside the president-elect’s hotel in Las Vegas, police and fire officials said.

Tesla is owned by tech billionaire Elon Musk who has been a close ally of Mr Trump – donating millions to his successful 2024 US election campaign.

The blast in Las Vegas is being looked at as a possible terror attack, three senior law enforcement officials told NBC News, Sky News’ US partner.

As yet, officials have not provided a cause for the explosion.

Sheriff Kevin McMahill from Las Vegas police said the force knows who rented the truck but it will not be revealing their name at this stage.

In a news conference in Las Vegas, Mr McMahill added that officers are “absolutely investigating” whether the blast was connected to the attack that left at least 15 people dead in New Orleans the same day.

He added: “We’re not ruling anything out yet.”

The three law enforcement officers who spoke to NBC had earlier said they did not believe the two incidents were connected.

Meanwhile, Mr McMahill said there is “no indication” the Las Vegas explosion was connected to the Islamic State (ISIS) terror group. It comes after the FBI found an ISIS flag on the back of the truck used in the New Orleans attack.

The Las Vegas sheriff also said police have not found any devices that could have been used to set off the explosives in the vehicle outside the Trump hotel.

Mr McMahill continued: “I have to thank Elon Musk specifically, he gave us quite a lot of additional information in regards to how the vehicle was locked after it exploded… as well as being able to capture all of the video from the Tesla charging stations across the country.

“He sent that directly to us, so I appreciate his help on that.”

It had earlier emerged that the Tesla used in Las Vegas and the Ford used in New Orleans were rented from the same rental company.

Mr McMahill said this is something his officers will “continue to look into”.

Musk’s response to blast

Earlier, Mr Musk wrote on X: “We have now confirmed that the explosion was caused by very large fireworks and/or a bomb carried in the bed of the rented cybertruck and is unrelated to the vehicle itself.

“All vehicle telemetry was positive at the time of the explosion.”

He had previously written: “The whole Tesla senior team is investigating this matter right now. Will post more information as soon as we learn anything. We’ve never seen anything like this.”

Work is under way to remove the driver’s body from the vehicle and the FBI is involved in the investigation.

The seven people also affected were nearby at the time and were taken to hospital for treatment for minor injuries.

A Clark County spokeswoman said the blaze in the valet area of the Trump International Hotel in Las Vegas was reported at 8.40am local time (4.40pm UK time).

Eric Trump, Mr Trump’s son and executive vice president of the Trump Organization, posted about the fire on social media.

He acknowledged that “a reported electric vehicle fire occurred in the porte cochere of Trump Las Vegas”.

And he praised fire crews and local police “for their swift response and professionalism”.

Mary Lescano Paguada, 43, who was on holiday in Las Vegas from San Antonio, Texas, to celebrate the new year at the hotel, told Sky’s US partner network NBC News she heard an explosion in the early morning.

At first, she did not worry until she started seeing officers responding to the scene.

Ms Paguada said once she and her husband reached the reception area, they heard screaming and were told by hotel staff to get out and “don’t breathe the smoke, don’t stay”.

She said they were not allowed to return to their rooms after they went downstairs in an attempt to get them to evacuate the area.

The 64-storey hotel is just behind the famous Las Vegas Strip and opposite the Fashion Show Las Vegas shopping mall.