The incident, which happened in Lexington, Kentucky, left an 18-inch hole in the Santa, which had pride of place in a couple’s front garden.
The Father Christmas had been purchased just a few days earlier for $200.
The camera footage, obtained by WLEX, shows the car turning around while the sound of a firearm rings out.
Seconds later, the Santa falls back and starts to deflate.
Friendly neighbours have now said they will sew Santa up again so he can return to his position in the front yard.