Tesla is trying to start its own car insurance firm in China. This is the second time the automaker has launched this effort in China.
Over the last few years, Tesla has launched several insurance efforts, both in partnerships with other insurance companies and through its own insurance arm that involves real-time data from its fleet.
The latter is only available in the US for now.
Tesla has tried to launch its own insurance firm in China back in 2020, but it ended pulling its request a few months later.
A few years later, Tesla is giving it another shot. It has file to register the company against, according to official records (via Reuters):
The new company, located in Beijing’s Central Business District, was set up on July 30 with a registered capital of 50 million yuan ($6.92 million), the National Enterprise Credit Information Publicity System showed.
Tesla’s own effort in the insurance business aims at reducing premiums, as some insurers have been known to charge high premiums to Tesla owners.
The US automaker is renewing its effort to launch its own insurance arm in China just a few months after BYD, its biggest competitor in China, bought a bankrupted insurance firm with a similar aim in mind.
Electrek’s Take
Tesla’s renewed effort also comes as Tesla is getting closer to China, especially through Elon Musk.
Musk was supposed to go to India earlier this year and at the last minute, he canceled the trip and went to China instead.
In China, he was also to secured backing from government officials to help Tesla launch its Full Self-Driving package in the country.
I think a big part of motivation behind Tesla’s insurance program is to prepare for self-driving since enabling Tesla owners to put their vehicles into a driverless ride-hailing system, which has been the promised goal for years, would be an insurance mess.
Tesla would have to be the one to insure the vehicles otherwise, the costs would likely absurd.
FTC: We use income earning auto affiliate links. More.