Tesla insurers face new risks as political battle heats up

The trend: Tesla vehicles had long been flagged as more accident-prone than other cars due to their powerful acceleration and self-driving capabilities. But with the company’s CEO in the political spotlight, insurers and their customers face a new cost—increased vandalism, per Newsweek.

How we got here: Tesla vehicles are being targeted in the US and Europe due to backlash against Elon Musk’s involvement in the Trump administration. Cars are being shot at, set on fire, and vandalized with swastikas and anti-Musk messages, per Newsweek.

What this means for insurers: Experts warn that the increasing vandalism could drive up Tesla insurance costs and rates. Comprehensive insurance, which covers vandalism, might see higher premiums if incidents continue. And consumers have already posted social media photos of insurers dropping coverage for their cybertrucks, citing their presence on an “ineligible vehicles list.”