Core Points - Tesla Insurance may lose its authorization to operate in California due to enforcement actions from the California Department of Insurance (CDI) citing repeated failures to comply with claims handling laws [1][2] - The CDI reported a significant increase in complaints against State National Insurance Company, with 1,095 complaints received from January 1, 2025, to September 22, 2025, of which 415 were justified [1] - Tesla Insurance faced 842 complaints during the same period, with 166 deemed justified, and was accused of 532 violations of state insurance regulations [2] Regulatory Actions - Tesla Insurance and State National have 15 days to respond to the CDI's filing, failing which they will face a judicial review to determine their ability to continue offering insurance in California [3] - Potential monetary penalties for unlawful acts could reach up to $5,000 for each violation, or up to $10,000 for willful violations [3]