Tesla ordered to pay $162,000 for Model X fire after failed ‘vandalism’ defense

A Quebec court has ordered Tesla Canada to pay C$161,700 (about $162,000) after a Model X caught fire in Montreal while still under warranty. The 2020 SUV filled with smoke minutes after its owner turned on the heat in March 2023; he and his passenger got out safely, and the car burned within about five minutes. Police ruled out a crime, and an expert report pointed to an electrical failure in the dashboard as the likely cause.

The owner's insurer, Intact, paid him for the loss and then sued Tesla to recoup the money, arguing the vehicle was still covered by Tesla's standard warranty (4 years or 80,000 km in Canada). Tesla didn't respond in time and lost by default, then asked the court to undo that ruling. In doing so, a Tesla employee told the judge that vehicle fires are generally caused by misuse or vandalism. The judge rejected that argument, noting Tesla offered no data to back it up, and let the judgment stand. Tesla has not commented, and the deadline to appeal hasn't passed.

For homeowners, this case is mainly a reminder of how a major automaker handled a warranty dispute rather than a sign that EVs are especially fire-prone. Tesla's own published safety data still shows its vehicles catch fire far less often than the average gas car, and nothing here changes that broader safety picture.