Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photoelectric vehicles are expensive to repair - so much so that the automaker and insurers are addressing the issue in sharply different ways.
Insurance carriers, meanwhile, are writing off low-mileage Tesla Model Ys that have been in crashes, and sending them to salvage auctions after deeming many too expensive to repair.call on Wednesday, Musk said premiums from third-party insurance companies "in some cases were unreasonably high" and that the EV maker's insurance arm was putting pressure on those carriers by offering lower rates to Tesla owners.
"It's remarkable how small changes in the design of the bumper providing spare parts needed for collision repair have an enormous effect on the repair cost," he said. "Most accidents are actually small — a broken fender or scratched side of the car."So far, Tesla's reputation for expensive vehicle repairs does not seem to have dampened demand, which Musk says is running well ahead of the company's ability to produce.
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