$Tesla (TSLA.US)$ It's EXTREMELY important to note that Tesl...
$Tesla(TSLA.US$ It's EXTREMELY important to note that Tesla isn't an underwriting company, it is partnering with underwriting companies to offer its product under the Tesla Insurance name; it is NOT the insurance provider just the insurance broker, for which it will earn a small fee. Therefore it will not have revenue of $1700 per car per year. It will just earn small broker fee, and possibly only one time up-front the first year.
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wallstreet wolf : Not sure if the US insurance business works like in germany..
The 1700$ are the price for an unexperienced driver...and without an accident the price drop ...or not ?
Selected one wallstreet wolf: There's a big range of rates in the U.S., depending upon location (NYC or Montana), price, age of car, likelihood of accident, likely cost of repair, and of course in the U.S. there is personal liability insurance included.
Main Force Selected one: in the Netherlands a normal car insurance for a model 3 can goes from 47 to 117 euro a month or 56 dollar to 138 dollars a month.....so 1700 dollar a year is costly
Squid Guy : I'm assuming the end goal is to be the insurance provider and earn revenues of 1700 per car per year. Are you suggesting otherwise?
JoanFishers Squid Guy: This is quotes of what the author of the article is assuming. He is not assuming anywhere in the article it will eventually be another actual insurance company.
henryLiuu : What intrigues me is that when Elon sees legacy incumbents that dominate an industry and that are out of step, he sees an opportunity to disrupt. In this case, he asserts that this products deserve a recognition of the inherent safety profile and reduced risk. His belief that TSLA vehicle owners deserve a break drives him to try to reinvent the sector. Good for him.
CuryNeil henryLiuu: The reason why direct sales were outlawed was because of the abusive tactics of manufacturers. They had the power to pull franchises and sell direct, destroying many local businesses. It was an oligopoly power, like the trusts. Curious that Tesla fans seem to think that it's okay to destroy local business.