Elon Musk Hopes To Roll Out Tesla Insurance Worldwide, Beginning With Texas Next Month, But Says Regulations Present Massive Challenge

Tesla Inc is planning on offering car insurance, "based on actual driving history," in Texas next month, as per the company’s CEOElon Musk.

What Happened:The electric vehicle manufacturer, which already offers insurance in California, is hoping to jump into the insurance fray in Texas next month and anticipates approval in New York next year, Musk said.

The entrepreneur noted that the regulatory process for approval to offer insurance is “extremely slow & complex” and varies considerably by state.

Notably, Musk’s comments came in response to a Tesla user who said on Twitter he was quoted $500 per month for a Model Y car.

Separately, Musk also said on Twitter that Tesla would hopefully roll out the product worldwide in the long term.

Why It Matters: Tesla Insurance wasrolled out in California in August 2019. At the time, it was reported that the company’s coverage was up to 30% less expensive in some instances.

At the time, industry analysts said that the Tesla insurance product wasn’t likely to massively disrupt the insurance sector.

An app data leak, reported in June, found code that indicated rates for insurancewould be adjustedbased on time spent using autopilot, speed, miles driven per day, and other statistics.

Price Action: On Tuesday, Tesla shares closed nearly 1.3% higher at $739.38 in the regular session and fell 0.32% in the after-hours trading.