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Tesla launches new insurance policy in California with discount

Credit: Tesla

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Tesla has launched a new insurance program in California, announcing over the weekend that it is bringing underwriting in-house—and offering a discount for those who switch to the new policy.

On Saturday, Tesla announced that its new insurance policies in California will switch to being underwritten by Tesla Insurance Company from State National Insurance Company, which underwrites its existing plans. The company also said that it will offer a 3-percent discount on a terms’ worth of premiums to those who opt to switch to the new policy.

Tesla also says that customers must elect to switch to the policy by four days before March 14 in order to be eligible for the discount.

Credit: Tesla | Mobile App

READ MORE ON TESLA INSURANCE: Tesla partners with Zurich to provide insurance in Australia

At this time, California is still the only state in which Tesla insurance can’t use real-time Safety Scores for premium rates, though customers can access this feature in the 11 other states where the company’s insurance program is available. Last weekend, Tesla insurance also launched discounts in Arizona and Texas for those who use Supervised Full Self-Driving (FSD) for 50 percent or more of their driving.

Along with its insurance program in the U.S., Tesla appears to be preparing to launch insurance services in China, as the company officially registered a brokerage in the country in August. In June, Tesla hired former Geico executive Allen Laben as the Head of Strategic Insurance Partnerships, tasked with attempting to help lower the program’s premiums across the U.S.

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“Here’s my goal in this role: Make Tesla vehicles EASY and ECONOMICAL to insure,” Laben said following the announcement. “By partnering with insurance companies, teams across Tesla, and collision shops in the USA and Canada, we’ll lower the total cost of Tesla ownership and accelerate the world’s transition to sustainable energy.”

Where is Tesla insurance available?

Tesla currently offers its insurance program in the following 12 U.S. states:

  • Arizona
  • California*
  • Colorado
  • Illinois
  • Maryland
  • Minnesota
  • Nevada
  • Ohio
  • Oregon
  • Texas
  • Utah
  • Virginia

*Tesla insurance in California does not utilize real-time driving Safety Scores due to certain privacy laws.

Judge rules against Tesla insurance over ‘inflated’ premiums

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Elon Musk

Neuralink is planning to launch US trials translating thoughts into text

The trial could help pave the way for people with speech impairments to communicate more quickly and efficiently.

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Credit: Neuralink

Neuralink, Elon Musk’s brain-computer interface company, is reportedly planning to start a US clinical trial in October to use its technology to translate thoughts directly into text. 

The trial was approved by the FDA under an investigational device exemption, and it could help pave the way for people with speech impairments to communicate more quickly and efficiently.

Thought-to-text technology

The upcoming trial aims to read speech directly from the brain, enabling participants to transmit words without moving their mouths or using a keyboard, as noted in a report from Bloomberg News.

DJ Seo, Neuralink’s president, told an audience at the Korea Foundation for Advanced Studies in Seoul that the company hopes to demonstrate communication with large language model AI platforms “at the speed of thought,” potentially faster than spoken speech.

“We think that it’s actually possible to demonstrate abilities to speak to the latest AI model, or LLM models, at the speed of thought, even faster than how you’re speaking, and being able to potentially get that information back through your AirPods, effectively closing the loop,” Seo stated.

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Production ambitions

Ultimately, Seo described the trial as a stepping stone toward broader human enhancement and consumer-facing applications, beyond the company’s initial focus on medical conditions like ALS, stroke, blindness, and Parkinson’s disease.

While initial implants will focus on patients with severe speech impairments, Neuralink plans to eventually expand to healthy individuals by 2030. The company aims to scale to 20,000 implants per year by 2031.

“We’re currently envisioning a world where, in about 3 to 4 years, there will be someone who’s otherwise healthy who’s going to get a Neuralink. If you’re imagining saying something, we would be able to pick that up,” the executive noted.

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Tesla makes a big change to reflect new IRS EV tax credit rules

The new rules allow the order to be placed by September 30, and delivery can occur afterward. Leasing does not qualify for this offer, as delivery must take place before September 30 to receive the tax credit.

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(Credit: Tesla)

Tesla has made a big change in terms of its ordering process to reflect the new rules regarding the $7,500 EV tax credit, which the IRS adjusted the rules to just a few weeks ago.

The EV tax credit is set to expire on September 30, bringing an end to a program that has been widely advantageous to consumers and automakers, helping to incentivize the purchase of a sustainable powertrain for those who qualify.

However, the rules and language regarding the tax credit were adjusted slightly a few weeks ago. Previously, the tax credit was only available to those who took delivery of their vehicle by September 30, something Tesla was sure to be transparent about on its website:

Tesla warns consumers of huge, time-sensitive change coming soon

In late August, the IRS slightly adjusted the rules to reflect that those who are purchasing their EV outright do not need to take delivery by September 30. Instead, those consumers now need to enter a written binding contract and have a “nominal” down payment on the car to qualify.

The agency said:

“For purposes of sections 25E, 30D, and 45W, a vehicle is ‘acquired’ as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.”

This adjustment was greatly appreciated by many, as Tesla had previously suggested ordering and purchasing from inventory instead of a custom build. This led some consumers to settle for a trim, color, or features that they did not necessarily want as their first choice.

The new rules allow the order to be placed by September 30, and delivery can occur afterward. Leasing does not qualify for this offer, as delivery must take place before September 30 to receive the tax credit.

For outright purchases, however, customers can place an order until September 30 and still receive the tax credit, even though delivery could occur after that date.

Tesla has now made a big adjustment to the language on its website to reflect this:

This significant change reflects the IRS rules, which were previously confusing to many, as the meaning of a written agreement and nominal down payment still left many customers uncertain about whether they would be able to take delivery after September 30 and still receive the tax credit.

Tesla employees are also reaching out to potential customers, reiterating this point:

The move has potentially monumental implications for Tesla, as many took delivery over the past three months in preparation for the phase-out of the tax credit.

However, the deliveries that will occur after Q3, thanks to this adjustment, could benefit Tesla’s Q4 performance as well.

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Longtime Tesla hacker shares Model Y “E41” early details

The hacker hinted at a vehicle with a significantly simplified cabin, downgraded components, and cost-saving measures.

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Credit: @TOCAlberta/X

Longtime Tesla hacker @greentheonly has shared early firmware insights about the long-rumored affordable Model Y variant, which is reportedly codenamed “E41.” 

The hacker hinted at a vehicle with a significantly simplified cabin, downgraded components, and cost-saving measures.

Simple and affordable

As per the longtime Tesla hacker, the Model Y E41 will have its own distinct fascia. The vehicle will also have a cabin that’s notably more minimal than the standard Model Y. Key changes reportedly include a fiberglass headliner, simplified cabin lighting limited to the footwell, single-axis seat controls, and no power folding mirrors. 

Other reductions reportedly include no puddle lamps, no second-row display, no TPMS, and no glass roof. Audio will reportedly come in two configurations, “essential” or “essential with commodity.” The backup camera also loses its heater, and the console excludes the “airwave” feature. 

The Model Y E41’s wheels are reportedly at 18 inches, and the suspension appears downgraded. While exact motor specs remain unknown, the veteran Tesla hacker noted that the vehicle will likely offer both RWD and AWD trims.

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Early production and potential rollout

Previous firmware observations suggest that Tesla may already be producing Model Y E41 prototypes on non-specialized factory lines, at least if the rollout pattern of past Model Y and Model 3 refreshes were any indication. With this in mind, the Tesla hacker noted that it would not be surprising if the vehicle were already being made in significant volumes today.

Reuters previously reported the E41 will be at least 20% cheaper to manufacture than Tesla’s standard Model Y, allowing the vehicle to become a lower-cost alternative for consumers who wish to enter the ecosystem without shelling out too much. While official pricing and details remain unconfirmed, @greentheonly’s recent insights provide a pretty exciting teaser at how Tesla might package its budget-friendly Model Y.

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