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Tesla Insurance poised for imminent launch in several new US states

(Credit: Justin Wegner)

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Tesla seems to be hitting its stride with the rollout of its in-house insurance service, with the electric car maker looking to expand the business outside California. The first of these new states are Texas, Illinois, and Washington. 

Tesla Insurance was launched in 2019 partly as a way to provide electric vehicle owners with an insurance option that is fair and tailored for sustainable cars. The service is available in California for now, though Tesla executives have noted that there are plans to expand the service to the rest of the United States. Tesla has also set the pieces for a rollout to other countries such as Israel, China, and several areas in Europe. 

State National Insurance Company underwrites Tesla Insurance in California. 

Recent updates from S&P Global Market Intelligence reveal that Texas and Illinois’ insurance regulators have already approved the rates and policies for Tesla Insurance. On the other hand, Washington state has approved the initial forms for the local rollout of Tesla’s in-house insurance service. 

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As per a report from Forbes, Tesla is planning to issue its in-house insurance service in Texas through Redpoint County Mutual Insurance. In Illinois, Tesla will be partnering with Midvale Indemnity Co., a firm that stands as a subsidiary of American Family Insurance. Filings with Washington regulators from earlier this year note that Tesla is looking to tap Homesite Insurance Co., another American Family Insurance subsidiary, for its in-house insurance rollout in Washington. 

So far, Tesla Insurance coverage has not formally started in Texas, Illinois, or Washington. Though considering that the service has been approved by reguators in TX and IL, it may only be a matter of time before Tesla formally launches its insurance business in the two states. 

Tesla Insurance may be a small part of the company’s business for now, but Tom Super, vice president of insurance intelligence at market research company J.D. Power, has noted that the service has the potential to be a disruptor on its own. In a statement to the publication, Super remarked that Tesla’s in-house insurance service could “represent a viable long-term threat” to traditional and veteran auto insurance firms like Allstate and Geico. 

Don’t hesitate to contact us for news tips. Just send a message to tips@teslarati.com to give us a heads up.

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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 brings closure to Model Y moniker with launch of new trim level

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Credit: Tesla

With the launch of a new trim level for the Model Y last night, something almost went unnoticed — the loss of a moniker that Tesla just recently added to a couple of its variants of the all-electric crossover.

Tesla launched the Model Y All-Wheel-Drive last night, competitively priced at $41,990, but void of the luxurious features that are available within the Premium trims.

Upon examination of the car, one thing was missing, and it was noticeable: Tesla dropped the use of the “Standard” moniker to identify its entry-level offerings of the Model Y.

The Standard Model Y vehicles were introduced late last year, primarily to lower the entry price after the U.S. EV tax credit changes were made. Tesla stripped some features like the panoramic glass roof, premium audio, ambient lighting, acoustic-lined glass, and some of the storage.

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Last night, it simply switched the configurations away from “Standard” and simply as the Model Y Rear-Wheel-Drive and Model Y All-Wheel-Drive.

There are three plausible reasons for this move, and while it is minor, there must be an answer for why Tesla chose to abandon the name, yet keep the “Premium” in its upper-level offerings.

“Standard” carried a negative connotation in marketing

Words like “Standard” can subtly imply “basic,” “bare-bones,” or “cheap” to consumers, especially when directly contrasted with “Premium” on the configurator or website. Dropping it avoids making the entry-level Model Y feel inferior or low-end, even though it’s designed for affordability.

Tesla likely wanted the base trim to sound neutral and spec-focused (e.g., just “RWD” highlights drivetrain rather than feature level), while “Premium” continues to signal desirable upgrades, encouraging upsells to higher-margin variants.

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Simplifying the overall naming structure for less confusion

The initial “Standard vs. Premium” split (plus Performance) created a somewhat clunky hierarchy, especially as Tesla added more variants like Standard Long Range in some markets or the new AWD base.

Removing “Standard” streamlines things to a more straightforward progression (RWD → AWD → Premium RWD/AWD → Performance), making the lineup easier to understand at a glance. This aligns with Tesla’s history of iterative naming tweaks to reduce buyer hesitation.

Elevating brand perception and protecting perceived value

Keeping “Premium” reinforces that the bulk of the Model Y lineup (especially the popular Long Range models) remains a premium product with desirable features like better noise insulation, upgraded interiors, and tech.

Eliminating “Standard” prevents any dilution of the Tesla brand’s upscale image—particularly important in a competitive EV market—while the entry-level variants can quietly exist as accessible “RWD/AWD” options without drawing attention to them being decontented versions.

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You can check out the differences between the “Standard” and “Premium” Model Y vehicles below:

@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper

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Tesla bull sees odds rising of Tesla merger after Musk confirms SpaceX-xAI deal

Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.

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Credit: Tesla China

A prominent Tesla (NASDAQ:TSLA) bull has stated that the odds are rising that Tesla could eventually merge with SpaceX and xAI, following Elon Musk’s confirmation that the private space company has combined with his artificial intelligence startup. 

Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.

“In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Ives wrote in a post on X.

Ives’ comments followed confirmation from Elon Musk late Monday that SpaceX has merged with xAI. Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data.

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In a post on SpaceX’s official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion.

Tesla, for its part, has already increased its exposure to xAI, announcing a $2 billion investment in the startup last week in its Q4 and FY 2025 update letter.

While merger speculation has intensified, notable complications could emerge if SpaceX/xAI does merge with Tesla, as noted in a report from Investors Business Daily.

SpaceX holds major U.S. government contracts, including with the Department of Defense and NASA, and xAI’s Grok is being used by the U.S. Department of War. Tesla, for its part, maintains extensive operations in China through Gigafactory Shanghai and its Megapack facility. 

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Elon Musk and xAI donate generators to TN amid historic power outages

The donation comes as thousands of households have gone days without electricity amid freezing temperatures.

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Credit: Tesla

Elon Musk has donated hundreds of generators to Tennessee residents still without power following a historic winter storm, as per an update from Governor Bill Lee. 

The donation comes as thousands of households have gone days without electricity amid freezing temperatures.

Musk donates generators

As noted in a report from WSMV4, the historic storm that hit Tennessee resulted in hundreds of thousands of residents experiencing a power outage at the end of January. Thousands are still living without power or heat in freezing temperatures for up to nine days.

As per TN Gov. Bill Lee in a post on X, Elon Musk and xAI have donated hundreds of generators to assist residents in affected areas. “Tennesseans without power need immediate help. I’m deeply grateful to @elonmusk & @xAI for going above & beyond to support Tennesseans by donating hundreds of generators to fill the gap, & I value their continued partnership to solve problems & support communities across our state,” he wrote in his post. 

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Tennessee officials have stated that recovery efforts remain ongoing as crews work to restore power and address damage caused by the winter storm. The generators are expected to provide temporary relief for residents facing power outages during freezing conditions.

Tesla Powerwalls may follow

Musk publicly responded to the governor’s post while hinting that additional help may be on the way. This time, the additional support would be coming from Musk’s electric vehicle company, Tesla. 

“You’re most welcome. We’re working on providing Tesla Powerwalls too,” Musk wrote in his response to the official. 

Even before Elon Musk’s comment, Tesla had already extended help to affected customers in Mississippi and Tennessee. In a post on X, the official Tesla Charging account noted that all Superchargers in the two states are online, and free Supercharging has been enabled to help those in areas that are affected by persistent power outages. 

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These include Grenada, Tupelo, Corinth, Southhaven, and Horn Lake in Mississippi and several Supercharging sites in Memphis, Tennessee. 

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