Since venturing into the auto insurance arena in 2019, Tesla has aspired to offer electric vehicle owners reduced premiums by leveraging its Full Self-Driving (FSD) technology for dynamic risk evaluation. Nonetheless, the burgeoning claims expenses associated with its insurance operations have persistently eroded profitability, culminating in a loss ratio of 103.3% in 2024—a figure that vastly surpasses the industry benchmark of 66.1%. This performance mirrors a troubling trend, with loss ratios standing at 114.7% in 2023 and 116.6% in 2022. Despite Tesla's efforts to incorporate revenue from parts sales and repair services under its "Services and Other" segment, it has struggled to counteract the insurance losses. Adding to the woes, premiums for the Model Y have surged by up to 30% year-on-year, while collision repair costs exceed those of traditional gasoline vehicles by 32%, further exacerbating insurance expenses.