Tesla is cutting rates in Texas. A new filing from Tesla Property & Casualty Insurance Company shows an overall −7.1% rate change, impacting about 38,799 policyholders and $60.6 million in written premium. That equates to roughly $4.4 million in premium coming out of the book.

The pricing framework remains the same. Tesla continues to lean on its algorithmic model, where rates are driven by mileage, vehicle characteristics, safety metrics, and territory. Mileage and safety sit at the center, reinforcing a behavior-based approach rather than traditional rating.

The more interesting piece is the gap between indication and execution. The filing points to a −19.2% indicated change, but Tesla is only taking −7.1%. That signals a controlled move—improving competitiveness while avoiding a full reset in pricing.

At the same time, the Texas book is shrinking. Since November 2025, Tesla Insurance has lost roughly 2,550 policyholders (down 6%) and about $2.4 million in written premium (down 4%).