diff --git a/homeassistant/components/bmw_connected_drive/coordinator.py b/homeassistant/components/bmw_connected_drive/coordinator.py
index 14875c54719..6e0ed2ab670 100644
--- a/homeassistant/components/bmw_connected_drive/coordinator.py
+++ b/homeassistant/components/bmw_connected_drive/coordinator.py
@@ -50,6 +50,9 @@ class BMWDataUpdateCoordinator(DataUpdateCoordinator[None]):
             update_interval=timedelta(seconds=SCAN_INTERVALS[entry.data[CONF_REGION]]),
         )
 
+        # Default to false on init so _async_update_data logic works
+        self.last_update_success = False
+
     async def _async_update_data(self) -> None:
         """Fetch data from BMW."""
         old_refresh_token = self.account.refresh_token
diff --git a/tests/components/bmw_connected_drive/test_coordinator.py b/tests/components/bmw_connected_drive/test_coordinator.py
index c449a9c4a59..862ff0cba55 100644
--- a/tests/components/bmw_connected_drive/test_coordinator.py
+++ b/tests/components/bmw_connected_drive/test_coordinator.py
@@ -7,8 +7,10 @@ from bimmer_connected.models import MyBMWAPIError, MyBMWAuthError
 from freezegun.api import FrozenDateTimeFactory
 import respx
 
-from homeassistant.core import HomeAssistant
+from homeassistant.components.bmw_connected_drive import DOMAIN as BMW_DOMAIN
+from homeassistant.core import DOMAIN as HA_DOMAIN, HomeAssistant
 from homeassistant.exceptions import ConfigEntryAuthFailed
+from homeassistant.helpers.issue_registry import IssueRegistry
 from homeassistant.helpers.update_coordinator import UpdateFailed
 
 from . import FIXTURE_CONFIG_ENTRY
@@ -92,3 +94,29 @@ async def test_update_reauth(
 
     assert coordinator.last_update_success is False
     assert isinstance(coordinator.last_exception, ConfigEntryAuthFailed) is True
+
+
+async def test_init_reauth(
+    hass: HomeAssistant,
+    bmw_fixture: respx.Router,
+    freezer: FrozenDateTimeFactory,
+    issue_registry: IssueRegistry,
+) -> None:
+    """Test the reauth form."""
+
+    config_entry = MockConfigEntry(**FIXTURE_CONFIG_ENTRY)
+    config_entry.add_to_hass(hass)
+
+    assert len(issue_registry.issues) == 0
+
+    with patch(
+        "bimmer_connected.account.MyBMWAccount.get_vehicles",
+        side_effect=MyBMWAuthError("Test error"),
+    ):
+        await hass.config_entries.async_setup(config_entry.entry_id)
+        await hass.async_block_till_done()
+
+    reauth_issue = issue_registry.async_get_issue(
+        HA_DOMAIN, f"config_entry_reauth_{BMW_DOMAIN}_{config_entry.entry_id}"
+    )
+    assert reauth_issue.active is True