The company will be called Tesla Insurance.
The company believes that it will be able to offer insurance rates for Tesla owners up to 30% lower than other insurance providers.
Tesla has been working on the insurance offering for some time. CEO Elon Musk first revealed in the company's first-quarter earnings call in April that Tesla was developing an insurance product, claiming it would be "much more compelling than anything else out there."
So, how should investors approach Tesla insurance?
"You've got to appreciate their willingness to think outside the box. They're coming up with ways...for people to buy their cars. And the product is great and they're doing all the sales without any advertising spending. You don't see commercials for Tesla. So I admire that completely...You bet big, though, on Tesla. I still worry about the balance sheet. I still worry about the cash flow," said Marks.
Watch to see what else Marks has to say about Tesla.
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