The family of four was able to escape uninjured but their garage and two cars, a Prius and a Tesla Model X, were heavily damaged.
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"I was woken up by smoke alarms going off at about 5 a.m. and I could hear explosions and popping from downstairs and the sound of breaking glass and that's what woke me up," said homeowner Jamie Cameron.
Cameron says security footage at their home on the corner of Farrell Way and Marston Lane in the Rivermark neighborhood appears to show the flames starting in the garage and then extending out to the vehicles in the driveway.
The fire marshal is investigating but has yet to make an official conclusion.
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Santa Clara's Fire Chief Bill Kelly says his firefighters take advanced training on how to handle batteries, like Tesla's, during fires.
"The nature of fires are changing and the hazards presented to firefighters are change with this new technology. It's fantastic technology but when it's on fire it really concerns us," said Kelly.
Because of the potential hazards of the vehicle batteries, Santa Clara Fire says they'll work with the homeowner in making sure the cars are moved safely.