Tesla Establishes Insurance Brokerage in China
Tesla has reportedly founded an insurance company in China: Tesla Insurance Brokers Co., Ltd.
Tesmanian, among other websites, reported on the news which was disclosed by the China National Enterprise Credit Information Publicity System. Registered capital for the new entity is roughly $7.2M (¥50M).
The news would seem to indicate Tesla's intention to expand its direct insurance product, which is currently only available in the state of California, to China. Tesla's management team shared details on their plans for insurance on the company's last quarterly earnings call.
"Ultimately, where we want to get to with Tesla Insurance is to be able to use the data that's captured in the car, in the driving profile of the person in the car, to be able to assess correlations and probabilities of crash and be able then to assess a premium on a monthly basis for that customer. And what makes this very exciting for us is the amount of data that is available with the customer's permission to use is not available on any other product or any other vehicle in the world," CFO Zach Kirkhorn said.
Tesla views their current insurance product in California as "version 0.9" as it currently only leverages fleet level data, providing a reduced rate due to the safety benefit of Autopilot. Tesla has delayed rolling that product out because they opted to spend more time working on the "version 1.0" product which will incorporate the telematic data Kirkhorn refers to in the quote above. "We hope to be filing that in a handful of states with regulators very shortly," said Kirkhorn.
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Disclosure: Rob Maurer is long TSLA stock and derivatives.