Tesla Insurance Could Potentially Be America’s Biggest Auto Insurer (Insurance Business)

Tesla Insurance Could Potentially Be America’s Biggest Auto Insurer

Monday, October 26th, 2020 Auto

Tesla Insurance – the auto insurance offshoot of Tesla Inc. – could become one of the largest auto insurers in America, if the unit’s valuation by chief executive Elon Musk is to be believed.

In a recent quarterly earnings call, Musk dropped hints that he sees Tesla Insurance taking up a good portion of the company’s car business.

“Obviously, insurance is substantial. So, insurance could very well be, I don’t know, 30%, 40% of the value of the car business, frankly,” he said.

Thirty per cent (30%) may not sound like much, but a report from CleanTechnica puts the figure into perspective. As of July, Tesla’s value exceeded almost every company in the S&P 500, the clean technology news portal noted, with the company’s market cap currently sitting at $391.95 billion.

If Tesla Insurance was 30% of the company’s current market cap, it would easily take the top insurer spot from State Farm, which has a market cap of $42 billion.


External References & Further Reading
https://www.insurancebusinessmag.com/us/news/breaking-news/tesla-insurance-could-potentially-be-americas-biggest-auto-insurer-237195.aspx
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