So they want $1m because.. they have nightmares about what would have happened if they couldn't get out of the car? Tesla certainly isn't to blame for the crash, and it sounds like they're not to blame for it catching on fire either. In addition, the passengers didn't even try the emergency door release levers (presumably because they didn't know about them, even though they're documented in the physical owner's manual).
Honestly, this just sounds like a money grab to me.
Honestly, this just sounds like a money grab to me.