In an attempt to address high insurance premiums impacting Tesla sales, Elon Musk promised a groundbreaking auto insurance solution. However, reports of understaffing at Tesla Insurance have left some customers waiting weeks or months for compensation, raising concerns about the company’s ability to deliver on its insurance commitments.
One such case involves Mark Bova, who, after a crash 16 days following his purchase of a Tesla Model S, waited seven months for payment on his totaled car and is still awaiting compensation for approximately $50,000 in medical expenses.
Customer complaints have flooded social media and online platforms, including the Better Business Bureau website, revealing frustration over delayed payouts, repairs, and difficulties reaching claims adjusters. Tesla’s ambitious promises of “vastly better” service than competitors and “same-day” collision repairs seem at odds with the mounting grievances.
This is not the first time Tesla’s ventures have faced scrutiny. The company’s insurance arm was established in 2019 to address customers walking away due to exorbitant insurance quotes based on high collision-repair costs for electric vehicles. However, sources suggest Tesla Insurance operated with a minimal staff, with around a dozen adjusters quickly overwhelmed by hundreds of claims.
The pattern of rushed and inadequate management extends beyond Tesla Insurance, with controversies arising in Musk’s other ventures. Recent investigations into SpaceX revealed at least 600 injuries and widespread failures to report safety data to regulators. Musk’s brain-chip startup, Neuralink, also faced criticism for experiments resulting in the suffering and deaths of lab animals.
Complaints against Tesla Insurance have caught the attention of state regulators, with the Ohio Department of Insurance finding multiple violations of state regulations in claim handling. While customer complaints about auto insurance companies are not uncommon, Tesla’s issues underscore a recurring theme of rushed management affecting consumer and worker experiences across Musk’s diverse enterprises.
