A class-action lawsuit has been filed against Tesla Insurance Services, alleging that the company overcharges for car insurance premiums. This accusation stems from the claim that Tesla bases premiums on “false” crash warnings rather than actual driving behavior.
Judge Brad Seligman of Alameda County Superior Court denied Tesla's request to dismiss the lawsuit, setting the stage for a detailed examination of Tesla's practices. While Tesla has denied any misleading conduct, the court’s decision to allow the case to proceed highlights the gravity of the allegations.
Safety Score Accuracy?
The plaintiff, Illinois resident Ricky Stephens, represents Tesla drivers from numerous states, including Arizona, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. This lawsuit, gaining traction under California's expansive unfair competition law, raises critical questions about the reliability and fairness of Tesla's insurance premium calculations.
The lawsuit, scheduled for an initial hearing in January 2024, seeks restitution, disgorgement of profits, and an injunction against alleged false advertising. The core issue lies in the “safety score” used by Tesla to determine insurance premiums. This score is affected by several factors, including hard braking, aggressive turning, and, notably, forward collision warning alerts.
Implications for Tesla and the Auto Insurance Industry
This lawsuit could have significant implications for Tesla and the broader auto insurance industry. The case highlights real-time data and algorithm-driven assessments in determining insurance premiums. Using vehicle data to calculate insurance rates, Tesla's innovative approach was seen as a game-changer. However, the current legal challenges suggest this technology might not be as flawless as initially perceived.
Several Tesla drivers have reported sporadic and random forward collision warnings, which adversely affect their safety scores and, consequently, their insurance premiums. This situation raises concerns about the accuracy of Tesla's vision system, which is still under development. If these collision warnings are indeed erroneous, as alleged, this could mean that customers are unfairly penalized with higher premiums based on inaccurate data.
Moreover, the case involving Tesla drivers who engaged in Track Mode on their EVs raises further questions about the insurance unit's algorithms. Reports of significant premium hikes after a single day of aggressive driving in controlled conditions challenge the fairness and transparency of Tesla's premium calculation methods.
Tesla's ongoing legal battle over its insurance practices is more than just a corporate dispute; it is a litmus test for the use of advanced technology in calculating insurance premiums. As the case progresses, it will be crucial to scrutinize the balance between innovative data use and the rights of consumers to fair and transparent insurance pricing. The outcome of this lawsuit could set a precedent for Tesla and the entire auto insurance industry as it grapples with integrating new technologies into traditional business models.
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In Tesla software update 2024.32 and onwards, Tesla has made a big—and unexpected—change to how its vehicles handle power sockets. This change impacts every vehicle except the Cybertruck, where you can already adjust how power sockets are handled on a case-by-case basis.
Power Socket Change
This change to the power sockets means that in 2024.32, Tesla vehicles will have their 12v sockets and USB ports turned off while in Sentry Mode. Previously, while the car was awake or Sentry Mode was active, the 12v sockets in the rear of the vehicle and any of the USB ports would all remain powered.
Now, owners will no longer be able to operate devices that rely on these ports once the vehicle falls asleep. This change renders some accessories almost useless, such as vehicle fridges. Owners previously relied on Sentry Mode coming on when their vehicle was parked, which kept the fridge in the vehicle’s sub-trunk powered. This change will also prevent owners from using Sentry Mode to keep USB ports powered to charge laptops and other devices.
Until further changes are made, owners will have to use Camp Mode to keep 12v sockets and USB ports powered. However, Camp Mode leaves the vehicle unlocked, making it insecure and unsuitable for things like sub-trunk fridges.
Cybertruck Power Interface
Tesla may be planning to integrate the Outlets & Accessories menu from the Cybertruck into the rest of its vehicles. The outlets menu in the Cybertruck allows you to keep the cabin (and bed) outlets in the vehicle active, even when the vehicle isn’t in use. These outlets remain powered for up to 12 hours after the Cybertruck is exited.
The Power Menu in the Cybertruck
Not a Tesla App
Sentry Mode Improvements
Drew Baglino, Tesla’s now former SVP of powertrains and energy, said back in February of this year that Tesla was looking at reducing the amount of power that Sentry Mode used. He stated that Sentry Mode power consumption needs to be improved and that the team was working on an update to reduce power by about 40%. According to Baglino, the improvements were expected to come in the second quarter of this year, but it’s not clear if this change in update 2024.32 is part of those changes that will lower Sentry Mode’s power consumption.
Even if these are planned changes, we hope Tesla makes them optional, and lets owners choose when to keep outlets powered and when to conserve energy.
Tesla has issued an OTA recall for the Cybertruck – unsurprisingly, one that has already been fixed for customer vehicles. We’ll expand on the recall a little later, but more importantly, the recall filing revealed that Tesla has now built and sold 27,185 Foundation-Series Cybertrucks for customers.
OTA Recall
The OTA recall – which was issued in update 2024.32.5.2 and above, covered an issue that could delay the rearview camera being displayed on the dashboard.
This would occur if the Cybertruck was powered on, and then quickly shifted to reverse. The rearview camera would not come up on screen within the prescribed 2-second timeframe.
According to the NHTSA filing, Tesla has already fixed this via the OTA update, and the rearview camera will now display within that 2-second timeframe as required going forward. This was another easy OTA fix for Tesla.
Not a Tesla App
27k Cybertrucks
The filing also revealed that Tesla has produced and delivered approximately 27 thousand Foundation-Series Cybertrucks through September 14th. Tesla has been producing the Cybertruck for approximately 11 months now, with the 12-month anniversary coming up on November 13th.
Elon Musk previously mentioned that Tesla intends to produce approximately 375,000 trucks per year to compete with the ICE pickup market. Today, Tesla produces 1.7 million Model 3 and Model Y vehicles per year, and about 80,000 Model S and Model X vehicles a year.
Overall, that 27 thousand over a year is only the start of production, and as Tesla expands and improves its production lines, we can expect that number to continue growing at a rapid pace. With the Foundation Series ending and Tesla opening up invites for reservation holders to configure their non-FS Cybertruck, that number is only expected to increase. The non-FS Cybertruck is priced at $79,990, $20k less than the Foundation Series. The Cybertruck will also become eligible for the Canadian iZEV Heavy EV Rebate.
This puts the Cybertruck in an excellent spot in the future—and it has already outsold its EV competitors in the same market. We’re looking forward to seeing how fast Tesla meets the upcoming demand for non-Foundation Series Cybertrucks.
