Tesla's Insurance Arm Bleeding Money: High Repair Costs Bite
2025-05-10
Tesla's insurance business continues to hemorrhage money, with a staggering 103.3% loss ratio in 2024, far exceeding the industry average of 66.1%. The culprit? Exorbitant repair costs for Tesla vehicles, averaging 32% higher than those of internal combustion engine (ICE) cars. Despite leveraging data from its Full Self-Driving system and vehicle telematics to adjust risk profiles, Tesla hasn't managed to effectively control costs. Poor customer satisfaction, marked by lengthy repair times and subpar communication, further exacerbates the problem. Rising premiums haven't solved the issue, leaving Tesla's insurance arm facing a precarious future.
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Repair Costs