Registered in the country’s National Enterprise Credit Information Publicity System, the insurance firm is known as Tesla Motors Hong Kong Ltd. It appeared on the said list on the 6th of August with Zhu Xiaotong, Global Vice President and the head of Tesla China, who was tagged as the insurance entity’s legal representative. It has a principal capital of $7.2 million or ¥50 million.
What’s in it for Tesla’s customers?
Owning car insurance is very important for every car owner. There are third party providers but it would be better if you can have an in-house insurance service for its own vehicle offerings. For Tesla owners, most especially in China, this would lead to lower insurance rates because the company has an in-depth knowledge of its product offerings.
This is seen as a step for the company to thoroughly expand the company’s capabilities, this time in its own insurance. Executives of the company discussed this heavily during the Q2 2020 Earnings Call.
Zachary Kirkhorn talked in deep detail about the boon of having their own insurance service. They said that the data gathered from its customers is important to aid the company and its goal in data management.
Tesla’s current insurance service is only available in the State of California.
The establishment of the insurance company in China is seen as an added presence in the country. Car models of the company are available in the Mainland but insurance has only been available through other providers.
This isn’t the only place on Earth that Tesla is looking to expand this latest initiative. They also set their eyes in European countries such as the United Kingdom and Germany.
Tesla established and started offering its own insurance for its vehicles in mid-2019.