The Obscure Insurance Law That Could Save Tesla
The Terrorism Risk Insurance Act was passed with good intentions. It could very well be used to help Elon and his failing car company thanks to Trump and the Attorney General.
It all started with a Note I published the other day.
Something was fishy about the Tesla showroom fires. I just couldn’t put my finger on it. In the Note, I implied that the fires were being set intentionally by the showrooms as a tool to defraud insurance. I surmised that it was over cars they could not sell in light of the backlash the company is currently facing.
But, what if it is way deeper than that?
A few days after posting the Note, I stumbled upon a theory that seemed to confirm there could be more to this. It came from a TikTok video from _.Sheillove I have followed her for sometime now on the app. She is an attorney and has proven reliable when it comes to legal sources or legislation that exists. After reading the information for myself. I don’t think she is wrong. As she suggested, I think it is completely reasonable that Elon might try to harness billions in federal money to save Tesla. Not just to recoup the cost of cars that he can’t sell. But to recoup the stock losses as well. It isn’t a traditional bail out. It’s a massive insurance scheme. It’s hard to even call it fraud. On paper, it’s all legal.
To understand what I mean, we have to go back to 9/11. In the wake of the attack, several laws were created. Mostly, we tend to focus on the Patriot Act. But, there were others. One of the things then president, George W. Bush signed into law was the Terrorism Risk Insurance Act of 2002, (TRIA). This bill seems innocuous at first glance. It shouldn’t be controversial at all. In fact, when it was passed in Congress, it received wide bipartisan support. For two decades it has existed quietly, and has been extended a handful of times. The latest extension, signed in 2019, funds the program until 2027.
The bill mandates two specific things. First, it says that commercial insurers must offer terrorism insurance. Prior to this legislation, most commercial insurance companies did not. Those who did, were less likely to in the wake of 9/11. The second thing it mandates, is a federal payout to the insured if the claim is a result of terrorism. It was a way for the corporations and industries to get back on their feet without bankrupting the commercial insurance agency in the event of another large-scale attack. Like I said, pretty innocuous stuff.
Yet, leave it Musk to find a way to personally profit off of something, and warp a good bill to its most perverse forms. With the help of Trump and the rest of the regime of course.
As protests at Tesla showrooms sprung up across the country, the regime was quick to label it “domestic terrorism”. That alone seemed odd. Attorney General Pam Bondi, stated that cases involving Teslas would be charged and tried as such. Trump, while not issuing written guidance specific to Tesla, has echoed her statements, and even suggested sending those charged with this new brand of “domestic terrorism” to El Salvador to be housed in prison there.
In order for TRIA to take effect, two things need to exist. The first is a terrorist act. There is much debate on whether the use of the phrase “domestic terrorism” is appropriate here. If you believe in common sense, the answer is no. However, if we look at the actual, and very literal definition of the word, then yes….it actually is. Terrorism requires only violence and political motivation or using fear to sway public opinion. Arson is considered a “violent act”, regardless if humans are in danger. The level of violent crime it is considered to be, varies from state to state, and based on whether it puts people in danger, but it is always considered a “violent crime”. TRIA itself defines terrorism as “to be a violent act dangerous to human life, property or infrastructure”. By very narrow and literal definitions, the acts are, indeed, terrorism.
There can be no reasonable argument made that the anti-Tesla rhetoric and protests are not politically motivated. Elon Musk’s role in the government as “special advisor”, head of DOGE, or whatever the hell he is doing in the White House, negates any statement that it is a protest against a corporation alone. There would be no protests against the company if Elon left the government. Likewise, if he left Tesla. The beef isn’t with the car. It is with Elon. He is intrinsically linked to the government.
The second thing that needs to happen before TRIA can be invoked is that the Secretary of the Treasury must certify that a terrorist act has taken place. He makes this determination in consultation with the Attorney General and Department of Homeland Security. Both Pam Bondi and Tom Hollman have made it clear they will see this as terrorism. So, the chances that if asked, Scott Bessent would deny them this certification is almost zero. Once that decision is made, per TRIA, it is not subject to judicial review.
So, what does this actually do for Elon?
It allows the insurer to pay out, with minimal cost to them anywhere from $5 million, up to $100 billion dollars for damages resulting from terrorism. This doesn’t just include actual property damage. It includes the loss of business from acts of terrorism. What do I mean by “minimal cost to them”? I’m glad you asked. See, TRIA 2002 says that the federal government will pay insurers 90% of the amount they pay out.
I’ll give you a second to absorb that…..because it took me a minute to process.
Elon could potentially be reimbursed billions of dollars from his insurance, and the federal government, for loss of revenue due to protest and vandalism activities at Tesla. Not just at the showrooms either. The vandalism of those vehicles already purchased are considered terrorism as well. They are trying to paint a connection to the stock falling. People are “afraid” to drive or buy Tesla’s, because…..domestic terrorism.
Is there anything stopping Elon from claiming that not only are the damaged vehicles a payable claim to his insurance, but the free falling stock prices as well? There isn’t anything frankly. TRIA is woefully lacking in that respect.
Of course, this bill was meant to help in the event of a wide-spread catastrophic event like 9/11. It was designed to help affected industries bounce back quickly. It was not meant to help a sniveling technocrat get paid back for dismantling the government, against the will of the people, stealing our data, or kicking grandma off social security. The wording however, is not as specific as it could be, and opens the door for Musk to try and take advantage of a loophole no one imagined would need to be closed.
Is there a chance that Trump and Musk are unaware that TRIA exists? Not likely. The Trump Organization insurer, Aon, who came under fire during the Trump trials in New York, are supporters of the bill, and pushed for it’s re-authorization in 2019. Congress and Trump would succeed in continuing the program, again with wide bipartisan support. Aon, while not a direct insurer is a global risk management company, who has consulted with Tesla in the past.
I still stand by the original Note. But, we can’t ignore that no matter who started those fires, the end result is the same. There is a chance to bail out Tesla using a majority of federal funds, with our tax dollars being spent to enrich someone who, quite frankly, has caused his own demise. Of course Trump and the rest of the regime will sell this as a good thing; Tax dollars being spent to protect an innocent corporation from fanatics. No one will bat an eye in Congress. And Elon will have legally committed what amounts to insurance fraud on the American taxpayer’s dime.
This may also be the reason for Musk’s delusional statements on the future of Tesla. During the car commercial spectacle on the White House South Lawn, Elon said he expected output of the vehicles to “double”. On Friday, he held a surprise “all hands on deck” meeting, urging investors not to sell, and once again, boasting that big things were coming. Meanwhile, shares of the company are still under $250.00, down nearly $75 from the end of February. This past week, Tesla investor, Ross Gerber, has publicly called for Musk to be removed from the board. Still, Musk seems pretty confident for a man who has no real reason to be. Ketamine fueled delusion? Or, is it possible he knows something we don’t?
It is important to note, that to date, TRIA has not paid any money out. It has never been used. Yet, even more reason it is the perfect vehicle to defraud the federal government. It has thus far, been untested. If the first few months of Trump and Elon’s stranglehold on the government has taught us anything, it is that the regime loves a good untested legal theory. It’s hard to imagine that this would be the exception.
I also believe it will be used as justification for martial law being declared
I too have thought that the fires were staged from within to advance the narrative, and counteract losses.