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Tesla launches new insurance policy in California with discount

Credit: Tesla

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Tesla has launched a new insurance program in California, announcing over the weekend that it is bringing underwriting in-house—and offering a discount for those who switch to the new policy.

On Saturday, Tesla announced that its new insurance policies in California will switch to being underwritten by Tesla Insurance Company from State National Insurance Company, which underwrites its existing plans. The company also said that it will offer a 3-percent discount on a terms’ worth of premiums to those who opt to switch to the new policy.

Tesla also says that customers must elect to switch to the policy by four days before March 14 in order to be eligible for the discount.

Credit: Tesla | Mobile App

READ MORE ON TESLA INSURANCE: Tesla partners with Zurich to provide insurance in Australia

At this time, California is still the only state in which Tesla insurance can’t use real-time Safety Scores for premium rates, though customers can access this feature in the 11 other states where the company’s insurance program is available. Last weekend, Tesla insurance also launched discounts in Arizona and Texas for those who use Supervised Full Self-Driving (FSD) for 50 percent or more of their driving.

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Along with its insurance program in the U.S., Tesla appears to be preparing to launch insurance services in China, as the company officially registered a brokerage in the country in August. In June, Tesla hired former Geico executive Allen Laben as the Head of Strategic Insurance Partnerships, tasked with attempting to help lower the program’s premiums across the U.S.

“Here’s my goal in this role: Make Tesla vehicles EASY and ECONOMICAL to insure,” Laben said following the announcement. “By partnering with insurance companies, teams across Tesla, and collision shops in the USA and Canada, we’ll lower the total cost of Tesla ownership and accelerate the world’s transition to sustainable energy.”

Where is Tesla insurance available?

Tesla currently offers its insurance program in the following 12 U.S. states:

  • Arizona
  • California*
  • Colorado
  • Illinois
  • Maryland
  • Minnesota
  • Nevada
  • Ohio
  • Oregon
  • Texas
  • Utah
  • Virginia

*Tesla insurance in California does not utilize real-time driving Safety Scores due to certain privacy laws.

Judge rules against Tesla insurance over ‘inflated’ premiums

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Need accessories for your Tesla? Check out the Teslarati Marketplace:

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Lifestyle

California hits Tesla Cybercab and Robotaxi driverless cars with new law

California just gave police power to ticket driverless cars, including Tesla’s Cybercab fleet.

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Concept rendering of Tesla Cybercab being cited by CA Highway Patrol (Credit: Grok)

California DMV formally adopted new rules on April 29, 2026 that allow law enforcement to issue “notices of noncompliance”, or in other words ticket autonomous vehicle companies when their cars commit moving violations. The rules take effect July 1, 2026 and officially closes a regulatory gap that previously let driverless cars operate on public roads with nearly no traffic enforcement consequences.

Until now, state traffic laws only applied to human “drivers,” which meant that when no person was behind the wheel, police had no mechanism to issue a ticket. Officers were limited to citing driverless vehicles for parking violations only. A well-known example came in September 2025, when a San Bruno officer watched a Waymo robotaxi execute an illegal U-turn and could do nothing but notify the company.

Under the new framework, when an officer observes a violation, the autonomous vehicle company is effectively treated as the driver. Companies must report each incident to the DMV within 72 hours, or 24 hours if a collision is involved. Repeated violations can result in fleet size restrictions, operational suspensions, or full permit revocation. Local officials also gained new authority to geofence driverless vehicles out of active emergency zones within two minutes and require a live emergency response line answered within 30 seconds.

Tesla Cybercab ramps Robotaxi public street testing as vehicle enters mass production queue

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California’s new enforcement rules arrive at a pivotal moment for Tesla. The company is ramping Cybercab production at Giga Texas toward hundreds of units per week, targeting at least 2 million units annually at full capacity, while simultaneously pushing to expand its Robotaxi service to dozens of U.S. cities by end of 2026. Unsupervised FSD for consumer vehicles is currently targeted for Q4 2026, and when it arrives, Tesla’s fleet may not have a human to absorb legal accountability, under the July 1 rules.

Tesla has confirmed plans to expand its Robotaxi service to seven new cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas, with the service already running without safety drivers in Austin. Musk has said he expects robotaxis to cover between a quarter and half of the United States by end of year.

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Tesla Model X shocks everyone by crushing every other used car in America

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

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Credit: Tesla Asia | X

The Tesla Model X was the fastest-selling used vehicle in the United States in the first quarter of the year, crushing every other used car in America.

iSeeCars data for the first quarter shows that the Model X was the fastest-selling used car, lasting just 25.6 days on the market on average, two days better than that of the second-place Lexus RX 350h. The Cybertruck, Model Y, and Model S, in seventh, ninth, and thirteenth place, respectively, also made the list.

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

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Bringing closure to these two vehicles signaled the end of the road for the cars that have effectively built Tesla’s reputation for luxury and high-end passenger vehicles.

Relying on the sales of its mass market Model Y and Model 3, as well as leaning on the success of future products like the Cybercab, is the angle Tesla has chosen to take.

Teslas are also performing extremely well as a whole on the resale market. iSeeCars data shows that, “while the average price of a 1- to 5-year-old non-Tesla EV fell 10.3% in Q1 2026 year-over-year, the average price of a used Tesla was essentially flat at 0.1% lower across the same period. Traditional gas car prices dropped 2.8% during this same period.”

Additionally, market share for gas cars has dropped nearly 3 percent since the same quarter last year. Tesla has remained level, while the non-Tesla EV market share has increased 30 percent, mostly due to more models available.

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Nevertheless, those non-Tesla EVs have seen their value drop by over 10 percent, while Tesla’s values have remained level.

Executive Analyst Karl Brauer said:

“Used electric vehicles without a Tesla badge have lost more than 10% of their value in the past year. This compares to stable values for Teslas and hybrids, and a modest 2.8% drop for traditional gasoline vehicles.”

Teslas, as well as non-luxury hybrids, are displaying the strongest resistance in the face of faltering demand, the publication says. But the more impressive performance is that of the Model X alone.

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Tesla’s decision to stop production of the Model X may have played some part in the vehicle’s pristine performance in Q1. With the car already placed at a premium price point, used models are already more appealing to consumers. Perhaps second-hand versions were more than enough for those who wanted a Model X, and only a Model X.

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Cybertruck

Tesla Cybertruck’s head-scratching trim sold terribly, recall documents reveal

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

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Credit: Tesla

After Tesla decided to build a Rear-Wheel-Drive Cybertruck trim back in 2025, which was void of many features and only featured a small discount.

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

The recall deals with a potentially separating wheel stud and potentially impacts 173 Cybertruck units with the 18-inch steel wheels. The Cybertruck RWD was the only trim level to feature these, and the 173 potentially impacted units represent a portion of the population of pickups. Therefore, it’s not the entire number of RWD Cybertruck sold, but it could show how little interest it gathered.

The NHTSA document states:

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“On affected vehicles, higher severity road perturbations and cornering may strain the stud hole in the wheel rotor, causing cracks to form. If cracking propagates with continued use and strain, the wheel stud could eventually separate from the wheel hub.”

Only 5 percent are expected to be impacted, meaning less than 10 units will have the issue if the NHTSA and Tesla estimates are correct. Nevertheless, the true story here is how terribly the RWD Cybertruck sold.

Tesla ended production and stopped offering the RWD Cybertruck to customers last September. For just $10,000 less than the All-Wheel-Drive trim, Tesla offered the RWD Cybertruck with just one motor, textile seats instead of leather, only 7 speakers instead of 15, no Rear Touchscreen, no Powered Tonneau Cover for the truck bed, and no 120v/240v outlets.

Tesla brings closure to head-scratching Cybertruck trim

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For just $10,000 more, at $79,990, owners could have received all of those premium features, as well as a more capable All-Wheel-Drive powertrain that featured Adaptive Air Suspension. The discount simply was not worth the sacrifices.

Orders were few and far between, and sources told us that when it was offered, sales were extremely tempered because customers could not see the value in this trim level.

Even Tesla’s most loyal supporters thought the offering was kind of a joke, and the $10,000 extra was simply worth it.

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Cybertruck RWD Recall by Joey Klender

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