Tsunoda performed a series of burnouts before flames began to lick from the engine cover.
It was an expensive day for Red Bull on the whole. During the same demonstration, Scott Speed crashed the other RB7.
Speed performed a flick spin before the car went nose-first into a plastic barrier and broke the front wing.
The cars are believed to be the same ones used at last year’s Adelaide Grand Final and later by Broc Feeney and Will Brown during a test at The Bend.
The Red Bull Showrun San Francisco Presented By Ford took place on Marina Blvd in San Francisco.
More than 40,000 people attended the event, which featured a series of cars from Ford, including its Dakar Raptor, a Mustang GT3, the F-150 Lightning Super Truck,
Tsunoda has taken on a reserve driver role with Red Bull this year after being dropped by the team.
He was replaced by Isack Hadjar, who stepped up from the sister Racing Bulls team.
Though there was some speculation that Tsunoda may end up at Racing Bulls, that vacancy was ultimately filled by Arvid Lindblad.
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