Tesla Motors set up an insurance broker company in Shanghai on August 6, 2020. According to regulatory filings, it was listed on the National Enterprise Credit Information Publicity System of China, reportedly with a principal capital of 50 million Yuan. Moreover, The address of this company matches that of Tesla’s Shanghai Gigafactory. 

The business scope of this company is listed as “insurance brokerage”, and it is owned by Tesla Motors Hong Kong Ltd. Zhu Xiaotong will be the person-in-charge and the legal representative for this insurance brokerage service.

Tesla introduced this insurance service in California last year, but it saw a shaky start. However, the company has since shown interest in spreading the insurance service to other American states and other nations as well. 

In July, following a full-year of profits, Elon Musk was reported to have been speaking to investors about “building a great, like a major insurance company”. Musk wants to use the data gathered from their vehicles to offer cheaper premiums than traditional insurers. He said, “At the heart of being competitive with insurance is what is the accuracy of your information.”

During the launch of the same service in California, Tesla, through its blog said “Starting today, we’re launching Tesla Insurance, a competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates, and in some cases as much as 30%. Tesla Insurance offers comprehensive coverage and claims management to support our customers in California, and it will expand to additional U.S. states in the future.” 

Why Tesla set up an insurance broker company

With the introduction of its own Car Wrap service in China last week, and an insurance broker company now, Tesla seems to be on a mission to build an all-in-one automobile service. 

This financial guide would provide advice in the interest of Tesla’s clients, and often act on their behalf. It would help the client identify their financial risks. A broker company would bring customers to insurance companies, while also guiding those same customers regarding their finances.