Tesla Bets It Can Bring Down Insurance Costs, Make Driving Safer

(Bloomberg) --

For more than six weeks now, the tech and finance industry has been riveted by Elon Musk’s pursuit of Twitter.

The topic has sucked up tons of oxygen and contributed to Tesla shares sagging amid a broader market rout and Shanghai’s shutdown to contain the spread of Covid-19.

The deal dominated the friendly conversation Musk had Monday with his buddies behind the All-In Podcast, who asked Tesla’s chief executive officer to elaborate on a tweet last month describing the company as a collection of many startups doing things he says other car companies aren’t. One of the products Musk touched on was Tesla Insurance.

The insurance offering — a passion project for CFO Zachary Kirkhorn — is currently available in just eight states, including California, Illinois and Texas. During the last earnings call, Kirkhorn said Tesla had become the second-largest insurer of its cars in the Lone Star State. Eventually, coverage will be available to 80% of the US, and then the company plans to go international.