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Tesla suspended its brand new car insurance policy just hours after launching it on Wednesday.
The company announced the launch of Tesla Insurance for owners in California, saying it was "designed to provide Tesla owners with up to 20pc lower rates, and in some cases as much as 30pc".
But within hours it had pulled the page from its website, replacing it with the words: "Algorithm update in progress."
Several customers complained on social media that the quotes the company gave them were significantly more expensive than those they already had from other companies, though others said they had received cover at a lower price, as promised.
A Tesla spokesman said the company removed the service after it discovered bugs which were affecting the quoted rates for some customers, and would be reinstating the service with more competitive prices for those owners.
Insurance for Tesla cars tend to be more expensive than other car brands, because of their high-tech components and because they have to be repaired at approved garages.
Elon Musk, Tesla’s chief executive, had announced that the company would begin selling insurance when the company unveiled first quarter results earlier this year.
At the time, Mr Musk said Tesla had an "information arbitrage opportunity," and suggested the company could use data about an individual driver to offer them better rates.
However, the company’s insurance FAQ page for customer says it "does not use nor record vehicle data, such as GPS or vehicle camera footage, when pricing insurance."
"Tesla uniquely understands its vehicles, technology, safety and repair costs, and eliminates fees taken by traditional insurance carriers," the company added.
It had planned to roll the service out to other US states, although it is unclear if it plans to do so internationally.
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