Tesla Canada Ordered to Pay $162,000 After Model X Catches Fire in Montreal

Tesla Canada has been ordered to reimburse insurer Intact $161,700 over a 2020 Model X that caught fire in Montreal, according to the Superior Court decision.

During the proceedings, a Tesla employee suggested that vehicle fires were generally associated with misuse or deliberate damage. Justice Ian Demers rejected Tesla’s application to overturn the default judgment Intact had secured in June, finding that the company had failed to provide supporting evidence or raise a sufficiently credible defence.

Sacha De Santis was behind the wheel of his Model X in Ahuntsic-Cartierville, with his partner beside him, around 1 a.m. on March 5, 2023, as reported by TVA Nouvelles.

Shortly after they switched on the heat, the couple noticed a smell of smoke coming from inside the vehicle. They stopped, took their things and left the car. Within approximately five minutes, the Model X was engulfed in flames and ultimately declared a total loss.

“It could have gone really badly. We were lucky,” De Santis told TVA Nouvelles (translated from French).

Insurer Takes Tesla to Court

A 2023 police investigation found no sign of a crime. Intact Assurance paid out $161,700 for the write-off, then went after Tesla Canada for the money.

The insurer argued that the Model X was still covered by Tesla’s basic vehicle warranty, which provides coverage for four years or 80,000 kilometres.

An expert report presented to Quebec Superior Court indicated the fire originated near the passenger-side dashboard, with a premature electrical failure considered the probable cause.

The ruling turned down Tesla’s bid to overturn a default judgment; it wasn’t a full trial on what caused the fire.

Tesla Canada has not publicly commented on the ruling, and the period for filing an appeal had not yet expired at the time of publication.

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