Tesla shares some insurance figures

Yesterday, Tesla held an earnings call to discuss its Q4 2022 results, and during the call, CEO Elon Musk and CFO Zach Kirkhorn shared some insights about Tesla Insurance.

When it comes to premiums, Tesla Insurance, which is currently available in 12 states, is at a $300 million annual premium run rate as of the end of last year. The business is growing 20% a quarter, faster than the growth in the vehicle business.

On average, 17% of Tesla customers in states where insurance is available have signed up for Tesla Insurance. This figure continues to tick up as the company spends more time in markets.

Most of the adoption around Tesla Insurance occurs when customers take delivery of a new car.

During the call, Kirkhorn said that the main priority of Tesla’s insurance business was and still is to improve the total cost of ownership of the vehicles. He added that the company looks to run a “healthy business” while keeping costs low and insurance affordable to customers.

Musk added that this strategy makes other car insurance companies offer more competitive rates for Teslas. He also mentioned that the company adjusted the design of the car and made changes in the software of the car to minimize the cost of repair.