Although Electric Autos - Tesla- are expensive (relatively) they require minimal electric power to operate; whereas gas run autos though relatively less expensive require gasoline to operate. Since the gas prices have increased more than 100%; consumers are finding it difficult to cope with the increased prices.
Using your own words to answer those questions:
Can Tesla take over the auto industry if the prices come down?
What could be the legal issues?
What type of risks are involved ?
What type of policies the insurance companies will develop?