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2021 MY max current on factory installed tow harness

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I have a factory installed tow harness on my 2021 MY that has the lead-acid 12v battery. I recently had a short develop in my RV trailer which proceeded to "let the smoke out" of the Tesla wiring harness. Tesla service center is telling me that the wiring harness was equipped with a 25amp fuse that did blow, but that the wire heated up faster than the fuse could blow.

This seems wrong to me. The purpose of the fuse is to protect the wiring/car in the event of a short. Unless the wiring harness is equipped with #8 or #6 Guage wire, the 25amp fuse was way to much.

Am I wrong in this thought process?
 
Fuses are designed to protect the circuit, but they aren't guaranteed to.

I didn't know that there was even a fuse in the harness. Everything else in the car is monitored and controlled by MOSFETs.

So how much is it going to cost you?