A Quebec Superior Court judge has refused Tesla Canada’s bid to overturn a court judgment over a Model X that burned in Montreal. As a result, Tesla Canada has to repay insurer Intact the C$161,700 it paid out for the total loss.
What happened
Around 1 a.m. on March 5, 2023, Sacha De Santis was driving a 2020 Model X P100D in Montreal’s Ahuntsic-Cartierville neighbourhood. Shortly after he switched on the heat, he and his passenger smelled smoke inside the vehicle. They pulled over and got out. Within about five minutes the SUV was engulfed in flames, and it was later declared a total loss. A police investigation in 2023 found no sign of a crime.
Intact paid out C$161,700 and then sued Tesla Motors Canada ULC to recover the money. Intact argued the vehicle was still covered by Tesla’s basic limited warranty, which in Canada runs 4 years or 80,000 km. An expert report filed by the insurer said the fire started near the passenger-side dashboard and that a premature electrical failure was the probable cause.
Tesla’s defence
Tesla did not respond to the lawsuit in time, and Intact got a default judgment in June 2026. Tesla then asked the court to set that judgment aside. In a sworn statement, a Tesla employee said vehicle fires are typically caused by misuse or vandalism.
Justice Ian Demers rejected the request in a decision dated September 30, 2026. He found that Tesla had not raised a serious defence and had made its misuse-or-vandalism claim without any supporting data. Tesla was also ordered to pay legal costs.
What it means for Canadian owners
This ruling was about whether to reopen a default judgment. It was not a full trial on what caused the fire, and it does not establish that any Tesla model has a defect. Tesla Canada has not commented publicly, and at the time of the first reports the deadline to appeal had not yet passed.
For owners in Ontario and across Canada, it’s a reminder that a factory warranty is a real protection. If something goes wrong while your car is still covered, a documented insurance claim and an independent expert report count for a lot. Keep your service records and know when your warranty ends.
Sources
- Electrek: Tesla ordered to pay C$162,000 for Model X fire after vandalism defense
- Portail de l’assurance (French): Le véhicule prend feu et la défense du fabricant ne convainc pas le tribunal
- Drive Tesla Canada: Tesla Ordered to Pay $162K After Model X Fire in Montreal
- Insurance Business Canada: Intact wins $161,700 fight with Tesla over Model X fire