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Elon Musk Hopes To Roll Out Tesla Insurance Worldwide, Beginning With Texas Next Month, But Says Regulations Present Massive Challenge

Benzinga2021-09-22

Tesla Inc is planning on offering car insurance, "based on actual driving history," in Texas next month, as per the company’s CEOElon Musk.

What Happened:The electric vehicle manufacturer, which already offers insurance in California, is hoping to jump into the insurance fray in Texas next month and anticipates approval in New York next year, Musk said.

The entrepreneur noted that the regulatory process for approval to offer insurance is “extremely slow & complex” and varies considerably by state.

Notably, Musk’s comments came in response to a Tesla user who said on Twitter he was quoted $500 per month for a Model Y car.

Separately, Musk also said on Twitter that Tesla would hopefully roll out the product worldwide in the long term.

Why It Matters: Tesla Insurance wasrolled out in California in August 2019. At the time, it was reported that the company’s coverage was up to 30% less expensive in some instances.

At the time, industry analysts said that the Tesla insurance product wasn’t likely to massively disrupt the insurance sector.

An app data leak, reported in June, found code that indicated rates for insurancewould be adjustedbased on time spent using autopilot, speed, miles driven per day, and other statistics.

Price Action: On Tuesday, Tesla shares closed nearly 1.3% higher at $739.38 in the regular session and fell 0.32% in the after-hours trading.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • FrickL
    ·2021-09-23
    Like pls ?
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    • tungleh
      Done
      2021-09-23
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  • SanWangtikup
    ·2021-09-22
    Gud 
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  • Ricky99
    ·2021-09-22
    Like
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    • tungleh
      Done
      2021-09-23
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  • BhaskarB
    ·2021-09-22
    Ok
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  • Deonc
    ·2021-09-22
    Will it another source of income or just an additional service provided to they customer. Please like and comment. 
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    • BhaskarB
      Ok
      2021-09-22
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  • chloectf
    ·2021-09-22
    Good idea, especially if they're trying to promote their self driving feature
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    • KLC
      Agreed.
      2021-09-23
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    • fionat
      There has been so many incidents with their self-driving cars, maybe that is why other insurance companies charge higher premiums
      2021-09-22
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  • VamX
    ·2021-09-22
    All in one package ?
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    • YiiYii
      Nice [财迷]
      2021-09-22
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  • lsn_9812
    ·2021-09-22
    ??
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  • LEEPK
    ·2021-09-22
    Like 
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    • tungleh
      Done
      2021-09-23
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  • Hoppie
    ·2021-09-22
    [Thinking] 
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  • lesandyc
    ·2021-09-22
    [Miser] another $making Avenue 
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  • Zified
    ·2021-09-22
    Ok
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    • Racoon
      Yes
      2021-09-22
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  • kennykoh
    ·2021-09-22
    Tesla Shock will be up again ?
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    • pin123
      ok
      2021-09-22
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    • Skygeemusic
      Sure thing ?
      2021-09-22
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  • Rara08
    ·2021-09-22
    Please like
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    • CW8
      Ok
      2021-09-22
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  • KYow
    ·2021-09-22
    Next is car financing?
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  • Kel9670ong
    ·2021-09-22
    Nice idea
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    • Zified
      Ok
      2021-09-22
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  • clingling
    ·2021-09-22
    Like pls
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  • Derpinerp
    ·2021-09-22
    New revenue stream good good. Not to mention benefit consumers too
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  • HENRYCSC
    ·2021-09-22
    Ok 
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  • tigee
    ·2021-09-22
    Like like like
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