Tesla's insurance division is under legal scrutiny in California for mishandling claims. The automaker risks millions in fines and potential loss of its license to operate in the state.
Tesla faces legal action in California over its insurance division's handling of claims. According to reports, the company could incur millions in fines as a result of these issues. Additionally, Tesla risks losing its right to offer insurance coverage within the state, which would impact its operations there.
The situation highlights ongoing challenges for Tesla's insurance arm, which has been expanding but now contends with regulatory pressure. No specific details on the number of mishandled claims or the exact nature of the legal proceedings were provided in available information. This development comes amid broader scrutiny of Tesla's business practices in the insurance sector.