The blaze happened in Lamledge Lane shortly before 11pm on Saturday.
The fire started in a Kia car and spread to nearby trees before it was extinguished by the fire service. The cause of the blaze has not yet been confirmed.
West Mercia Police officers were also at the scene and police tape was left surrounding the burnt-out vehicle on Sunday.
Resident Ian Hadley witnessed the blaze and notified the emergency services.
He said: "I heard a bang at about 10.50pm and looked outside to saw a fire breaking out on the road leading to Lamledge Lane Industrial Estate.
"Very often there are cars parked there so I assumed it was a vehicle fire.
"I called the fire brigade at 10.53pm, who arrived on scene shortly after 11.00pm.
"The fire got bigger and then I heard other bangs, whistling noises and the sound of nearby trees crackling as they set alight.
"The fire was put out within minutes but the smell of burnt rubber lingered."
Shropshire Fire & Rescue Service sent one appliance from Telford Central.
Crews used two sets of breathing apparatus and one hose-reel jet to extinguish the blaze.
West Mercia Police has been contacted for more information.