A Quebec court has ordered Tesla to pay more than $150,000 to an insurer after a 2020 Model X caught fire due to an electrical failure. The judge rejected Tesla's claim that the fire was caused by vandalism.
Tesla has been ordered to pay more than $150,000 after a Quebec man’s car caught on fire due to an electrical failure. The ruling follows a legal battle between Tesla and Sacha de Santis’s insurance company, Intact Insurance, which began after the incident in March 2023.
The fire involved a 2020 Tesla Model X, which was declared a total loss. De Santis described the event as starting with the smell of smoke after turning on a heater, which quickly escalated. “Once the flame came out from the dash, then it went to the seats and, like, everything; it just ate the car,” he said. “In two to three minutes, the car was on fire.”
De Santis filed a claim with Intact Insurance, which paid him $162,000 to replace the vehicle. The insurer then pursued Tesla to recover the funds. According to Quebec Superior Court documents, a Tesla representative argued that “fires in vehicles typically arise from issues around misuse or vandalism.”
The presiding judge rejected this argument, noting that an insurance adjuster had already ruled out misuse. In late September, the automaker’s request for a stay was rejected, and it was ordered to pay. Intact declined to comment on the possibility of an appeal, and Tesla did not respond to requests for comment.
Since the fire, De Santis reported that his insurance premiums have nearly tripled to around $1,000 per month. “My insurance went through the roof because they had a car to pay,” he said. He expressed hope that this increase would be reversed, noting that he and his passenger escaped the fire unscathed.
Despite the incident, De Santis purchased another Tesla immediately after the fire because it was “the easiest thing to do at this time.” When asked if he had second thoughts, he said: “They’re great cars, but I almost died in a fire.”
This ruling highlights the legal and financial risks automakers face when their defense strategies in product liability cases are not supported by specific evidence. The court's rejection of a general claim about vandalism, in favor of the insurer's assessment of an electrical failure, sets a precedent for how similar disputes may be handled in Quebec. For consumers, it underscores the potential long-term financial impacts, such as increased insurance premiums, following vehicle defects.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
The day's checked news, by email
One short email a day with the top stories. Free, and you can unsubscribe in one click.
Or follow for the latest news:
BusinessTrending
Bank of America has been ordered to pay $1.2 billion to the U.S. Treasury Department for violating anti-money laundering and sanctions laws. The penalty includes a record $750 million fine from the OCC.
A partnership representing five First Nations has invested $65.3 million for an indirect interest in the Coastal GasLink pipeline. The deal marks the first of two planned Indigenous investment transactions for the project.
