1/Auto insurance is almost completely commoditized. No one gives a about company A or company B. Inevitably, a purchase decision comes down to coverage for price. Period.

We know that $TSLA buyers are fiercely loyal and have a strong affinity to the brand. If Tesla can...

2/...offer a competitive rate for equal or better coverage, the decision is a no-brainer. As a Tesla fan, I know who I would choose to support.

Insurance companies make money (in part) by collecting premiums in exchange for insuring the driver against future accidents/damage...

3/ The better the company knows the driver, the more accurately the company can assess risk. This means ppl who are lower risk can pay less, and Tesla can offer them better rates.

It also means that ppl who are more risky will pay more, and Tesla can better protect itself.

4/ There is no company in the world who knows Tesla drivers better...than Tesla. All of the data generated by the car can tell the company exactly how/where/how much/how aggressively the person drives. This data can be used to personalize the premium rate, and allow Tesla to...

5/..offer the most attractive premium to the consumer.

Tesla can also bundle its insurance products (products with an "S", bc i expect home + life insurance businesses too) with its other products & services.

Ex: choose $TSLA insurance and get 1 year of free FSD.

What does...

6/ ...FSD cost Tesla? Basically, nothing. But that free year of FSD has VALUE.

What insurance company can compete with that?

The kicker? This will also generate more FSD conversions as many ppl will get hooked.

The U.S. auto insurance business alone is worth over $300B.

7/...As $TSLA's fleet grows and as its insurance products are increasingly avaliable, this product will generate billions...

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