Insurance premiums for Tesla Inc. (NASDAQ:TSLA) vehicles are at risk of an increase due to a surge in vandalism against the company's vehicles.

What Happened: There have been several instances of vandalism against Tesla vehicles, with incidents including spray-painting, arson, and even shootings, fuelled by mounting resentment towards CEO Elon Musk over his role with the Donald Trump administration.

According to a report by Newsweek, insurance experts warn that the rising trend of attacks could significantly increase insurance costs for Tesla vehicles, which are already more expensive to insure than most other cars.

Matt Brannon from Insurify, as reported by Newsweek, noted that if vandalism incidents continue, comprehensive coverage rates could increase.

See Also: 80 Tesla Vehicles Damaged At Dealership In Hamilton: ‘A Series Of Mischief,’ Says Police

The average annual cost to insure a Tesla Model 3 is around $4,362, according to Insurify’s data. This is significantly higher than comparable models from other brands.

The backlash against Musk has also negatively impacted Tesla’s sales and stock prices. The company’s stock price has taken a hit, and there has been a slump in sales across Europe and globally.

Why It Matters: The surge in anti-Musk sentiment has led to a series of vandalism incidents targeting Tesla vehicles and dealerships. On Wednesday, a Tesla dealership in Hamilton, Canada, was extensively vandalized, affecting up to 80 vehicles.

Tesla vehicles were also targeted in arson attacks in Las Vegas and Kansas City.

These incidents have led Tesla owners to call on Musk for advanced security features. The rising costs of repairs, often not covered by insurance or subject to high co-pay fees, have added to the concerns of Tesla owners.

Earlier in March, a Tesla Cybertruck was defaced with a swastika in New York City, shocking the Jewish owner. The perpetrator, identified as Michael Lewis, was later apprehended by the police.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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