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Elon Musk’s insurance plans could be a difference-maker for Tesla’s brand

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7 years ago

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During Tesla’s first-quarter earnings call, Elon Musk noted that the company would be offering a “compelling insurance product” for its vehicles. Musk even provided an estimated timeframe for the service’s launch, stating that Tesla’s insurance would be rolled out within a month.

While the idea of an in-house insurance program might seem like an unnecessary distraction for the electric car maker at this point, the service could very well become a critical factor in Tesla’s pursuit of sustained profitability. This is according to Eddie Yoon, a director at The Cambridge Group, a firm that specializes in growth strategy. According to Yoon, a well-rounded, properly-released insurance program could help make Tesla into one of the industry’s most influential brands.

In an article on the Harvard Business Review, Yoon notes that companies which become multi-billion-dollar mega-brands usually meet several critical success factors. The first of these involves picking the right first adjacency to enter. Since breaching an untried market is difficult, companies that succeed generally go for an adjacency that has a similar go-to-market model, or at least one where a strong partner could be leveraged. Tesla appears to be doing the latter by partnering with Markel to provide insurance to its customers.

The first adjacency must also have attractive economics that could be measured, among other things, by how it could improve the company’s core business. This is pertinent for Tesla, since the company’s vehicles are generally cheaper to run than an internal combustion car. If Tesla can reduce the price of its vehicles’ insurance through its own service, the company could make the idea of owning an electric car more attractive and practical to a wider spectrum of customers.

Coupled with Tesla’s continued optimizations in the production of its vehicles, a solid, reasonable insurance program could result in more electric car sales for the company. This, of course, gives Tesla a better chance at becoming profitable in the long-term.

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If Tesla proves successful in rolling out its auto insurance service, the company could potentially expand the program to other areas of its business. Tesla is currently aiming to ramp its Energy business, with Elon Musk dubbing 2019 as the “Year of the Solar Roof and Powerwall.” Musk has also hinted at a “Tesla smart home” in the past. Perhaps these products could pave the way for a Tesla home insurance program in the future? Such a possibility is not too farfetched.

These ideas and initiatives could seem drastic in light of Tesla’s business today, but Yoon noted that other mega-brands are adopting similar strategies. Gerber baby foods, for example, generated $900 million in life insurance premiums in 2017. That’s equal to about 75% of its core baby food business during the year. With this in mind, it appears that Elon Musk’s idea for Tesla’s insurance service not be too farfetched at all.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla removes Safety Monitors, begins fully autonomous Robotaxi testing

This development, in terms of the Robotaxi program, is massive. Tesla has been working incredibly hard to expand its fleet of Robotaxi vehicles to accommodate the considerable demand it has experienced for the platform.

Published

9 hours ago

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December 14, 2025

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Credit: @Mandablorian | X

Tesla has started Robotaxi testing in Austin, Texas, without any vehicle occupants, the company’s CEO Elon Musk confirmed on Sunday. Two Tesla Model Y Robotaxi units were spotted in Austin traveling on public roads with nobody in the car.

The testing phase begins just a week after Musk confirmed that Tesla would be removing Safety Monitors from its vehicles “within the next three weeks.” Tesla has been working to initiate driverless rides by the end of the year since the Robotaxi fleet was launched back in June.

Two units were spotted, with the first being seen from the side and clearly showing no human beings inside the cabin of the Model Y Robotaxi:

Another unit, which is the same color but was confirmed as a different vehicle, was spotted just a few moments later:

The two units are traveling in the general vicinity of the South Congress and Dawson neighborhoods of downtown Austin. These are located on the southside of the city.

This development, in terms of the Robotaxi program, is massive. Tesla has been working incredibly hard to expand its fleet of Robotaxi vehicles to accommodate the considerable demand it has experienced for the platform.

However, the main focus of the Robotaxi program since its launch in the Summer was to remove Safety Monitors and initiate completely driverless rides. This effort is close to becoming a reality, and the efforts of the company are coming to fruition.

It is a drastic step in the company’s trek for self-driving technology, as it plans to expand it to passenger vehicles in the coming years. Tesla owners have plenty of experience with the Full Self-Driving suite, which is not fully autonomous, but is consistently ranked among the best-performing platforms in the world.

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Tesla refines Full Self-Driving, latest update impresses where it last came up short

We were able to go out and test it pretty extensively on Saturday, and the changes Tesla made from the previous version were incredibly impressive, especially considering it seemed to excel where it last came up short.

Published

21 hours ago

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December 14, 2025

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Credit: TESLARATI

Tesla released Full Self-Driving v14.2.1.25 on Friday night to Early Access Program (EAP) members. It came as a surprise, as it was paired with the release of the Holiday Update.

We were able to go out and test it pretty extensively on Saturday, and the changes Tesla made from the previous version were incredibly impressive, especially considering it seemed to excel where it last came up short.

Tesla supplements Holiday Update by sneaking in new Full Self-Driving version

With Tesla Full Self-Driving v14.2.1, there were some serious regressions. Speed Profiles were overtinkered with, causing some modes to behave in a strange manner. Hurry Mode was the most evident, as it refused to go more than 10 MPH over the speed limit on freeways.

It would routinely hold up traffic at this speed, and flipping it into Mad Max mode was sort of over the top. Hurry is what I use most frequently, and it had become somewhat unusable with v14.2.1.

It seemed as if Speed Profiles should be more associated with both passing and lane-changing frequency. Capping speeds does not help as it can impede the flow of traffic. When FSD travels at the speed of other traffic, it is much more effective and less disruptive.

With v14.2.1.25, there were three noticeable changes that improved its performance significantly: Speed Profile refinements, lane change confidence, and Speed Limit recognition.

Speed Profile Refinement

Speed Profiles have been significantly improved. Hurry Mode is no longer capped at 10 MPH over the speed limit and now travels with the flow of traffic. This is much more comfortable during highway operation, and I was not required to intervene at any point.

With v14.2.1, I was sometimes assisting it with lane changes, and felt it was in the wrong place at the wrong time more frequently than ever before.

However, this was one of the best-performing FSD versions in recent memory, and I really did not have any complaints on the highway. Speed, maneuvering, lane switching, routing, and aggressiveness were all perfect.

Lane Changes

v14.2.1 had a tendency to be a little more timid when changing lanes, which was sort of frustrating at times. When the car decides to change lanes and turn on its signal, it needs to pull the trigger and change lanes.

It also changed lanes at extremely unnecessary times, which was a real frustration.

There were no issues today on v14.2.1.25; lane changes were super confident, executed at the correct time, and in the correct fashion. It made good decisions on when to get into the right lane when proceeding toward its exit.

It was one of the first times in a while that I did not feel as if I needed to nudge it to change lanes. I was very impressed.

Speed Limit Recognition

So, this is a complex issue. With v14.2.1, there were many times when it would see a Speed Limit sign that was not meant for the car (one catered for tractor trailers, for example) or even a route sign, and it would incorrectly adjust the speed. It did this on the highway several times, mistaking a Route 30 sign for a 30 MPH sign, then beginning to decelerate from 55 MPH to 30 MPH on the highway.

This required an intervention. I also had an issue leaving a drive-thru Christmas lights display, where the owners of the private property had a 15 MPH sign posted nearly every 200 yards for about a mile and a half.

The car identified it as a 55 MPH sign and sped up significantly. This caused an intervention, and I had to drive manually.

It seems like FSD v14.2.1.25 is now less reliant on the signage (maybe because it was incorrectly labeling it) and more reliant on map data or the behavior of nearby traffic.

A good example was on the highway today: despite the car reading that Route 30 sign and the Speed Limit sign on the center screen reading 30 MPH, the car did not decelerate. It continued at the same speed, but I’m not sure if that’s because of traffic or map data:

A Lone Complaint

Tesla has said future updates will include parking improvements, and I’m really anxious for them, because parking is not great. I’ve had some real issues with it over the past couple of months.

Today was no different:

Full Self-Driving v14.2.1.25 is really a massive improvement over past versions, and it seems apparent that Tesla took its time with fixing the bugs, especially with highway operation on v14.2.1.

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Tesla hints at Starlink integration with recent patent

“By employing polymer blends, some examples enable RF transmission from all the modules to satellites and other communication devices both inside and outside the vehicle.”

Published

2 days ago

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December 13, 2025

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Credit: Grok

Tesla hinted at a potential Starlink internet terminal integration within its vehicles in a recent patent, which describes a vehicle roof assembly with integrated radio frequency (RF) transparency.

The patent, which is Pub. No U.S. 2025/0368267 describes a new vehicle roof that is made of RF-transparent polymer materials, allowing and “facilitating clear communication with external devices and satellites.”

Tesla believes that a new vehicle roof design, comprised of different materials than the standard metallic or glass elements used in cars today, would allow the company to integrate modern vehicular technologies, “particularly those requiring radio frequency transmission and reception.

Instead of glass or metallic materials, Tesla says vehicles may benefit from high-strength polymer blends, such as Polycarbonate, Acrylonitrile Butadiene Styrene, or Acrylonitrile Styrene Acrylate.

These materials still provide ideal strength metrics for crashworthiness, stiffness for noise, vibration, and harshness control, and are compliant with head impact regulations.

They would also enable better performance with modern technologies, like internet terminals, which need an uninterrupted signal to satellites for maximum reception. Tesla writes in the patent:

“By employing polymer blends, some examples enable RF transmission from all the modules to satellites and other communication devices both inside and outside the vehicle.”

One of the challenges Tesla seems to be aware of with this type of roof design is the fact that it will still have to enable safety and keep that at the forefront of the design. As you can see in the illustration above, Tesla plans to use four layers to increase safety and rigidity, while also combating noise and vibration.

It notes in the patent that disclosed examples still meet the safety requirements outlined in the Federal Motor Vehicle Safety Standards (FMVSS).

Starlink integrated directly into Tesla vehicles would be a considerable advantage for owners. It would come with a handful of distinct advantages.

Initially, the inclusion of Starlink would completely eliminate cellular dead zones, something that is an issue, especially in rural areas. Starlink would provide connectivity in these remote regions and would ensure uninterrupted service during road trips and off-grid adventures.

It could also be a critical addition for Robotaxi, as it is crucial to have solid and reliable connectivity for remote monitoring and fleet management.

Starlink’s growing constellation, thanks to SpaceX’s routine and frequent launch schedule, will provide secure, stable, and reliable internet connectivity for Tesla vehicles.

SpaceX reaches incredible milestone with Starlink program

Although many owners have already mounted Starlink Mini dishes under their glass roofs for a similar experience, it may be integrated directly into Teslas in the coming years, either as an upgrade or a standard feature.

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