[RahulNagaraj]

Tesla electric vehicles are said to be so expensive to repair that insurance companies are addressing the issue in a harsh way.

According to media reports, insurance companies are writing off Tesla EVs that have been involved in crashes. Even low-mileage EVs are being sent to the salvage auctions after being deemed too expensive to repair.



As per an analysis, of the 120 Tesla Model Ys that were totalled in accidents, the vast majority had less than 10,000 miles on the odometer. Also, the Tesla Model Ys considered in the analysis were said to be 2022 or 2023 models manufactured at either Tesla's California or Texas Gigafactory.

Stating example, a 2022 Model Y Long Range produced in Texas and involved in a front collision had a retail price of $61,388 and an estimated repair cost of $50,388. Reports also stated a second Austin-built Model Y, involved in a side collision, had a retail price of $72,667 and an estimated repair cost of $43,814.

Elon Musk, CEO of Tesla, confirmed that the company was making design & software changes to its vehicles, which should help bring down repair costs & in turn, the insurance premiums. Musk noticed that premiums from third-party insurance companies "were unreasonably high in some cases". He further added that most of the accidents were actually small; like a broken fender or a scratch on the side of a car. He remarked how small changes to the design & providing spare parts for collision repair could have an enormous effect on the cost.

That being said, Tesla's expensive repair costs haven't affected its sales. Musk stated that the demand was well ahead of Tesla's production capacity.

Source: Reuters

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