The Kiwis' mishap capped a day of carnage on the Great Sound, turning too high on their foil, as they chased BAR off the start-line.
Most crew members jumped clear, but cyclor Simon van Velthooven, skipper Glenn Ashby and helmsman Peter Burling remained in the boat.
The race was black-flagged, gifting Sir Ben Ainslie the win and taking the scoreline to 3-1, still in Team NZ's favour.
The big question now is whether TNZ can fix the boat in time for tomorrow's racing.
The PredictWind forecast for tomorrow is for gusts over 30 knots and averages in the low to mid 20s.
Do ETNZ rush to put the boat back together and try to get out there? Or take an extra day and ensure they get things right?
Earlier in the day, the Kiwis almost didn't make the start-line for their opening race, after suffering damage to their wing in the build-up and returning to shore to hurriedly install a replacement part.
In winds threatening the average upper limit of 24 knots, they were on the water, preparing for their third semifinal race against BAR, when they appeared to suffer damage to their wing - a similar issue to the one faced by the British yesterday.
Scheduled for the second race of the day, Emirates Team NZ worked feverishly to install their second wing in time for the start and were assisted, when strong winds caused delays to the Team Japan v Artemis Racing (Sweden) contest.
New Zealand held a 2-0 lead in their first-to-five playoff against BAR, after their rivals broke their wing in yesterday's opening encounter and could not repair it in time to line up for the second.
But conditions were even more treacherous today and racing become just as much about survival as speed.