The $1.2 trillion dollar market that Tesla aims to dominate by 2030

The $1.2 trillion dollar market that Tesla aims to dominate by 2030

The insurance market worldwide for motor vehicles is valued at 800 billion U.S. dollars. How many automakers want that market? Well, they probably all do. But there’s really only one automaker that wants to sell insurance in Europe, China and North America, the three biggest car regions in the world. Hello, my friends. Welcome to the channel on the electric Viking. Great to see you. Welcome to all the new subscribers. And welcome back, everyone. Thank you for tuning in. It’s great to have you. We’ve done more than 3000 videos over the past year and a half on electric cars, Tesla, BYD, battery technology, solar, all that stuff, renewable energy, the death of coal. And it is dying. Believe me, it is dying. And what will replace coal. However, I haven’t done a lot of videos on the insurance market because most people, most people like, oh, that’s boring up insurance, who cares about insurance? But I think you’d care if it was going to affect.

Your money in your pocket. And it will. Why do I say that? Well, insurance makes a lot of money. The truth is some of the biggest insurers in the world make billions of dollars in profit every year. And Tesla is saying, you know what, why don’t we do that too? Because you know what? Tesla has a huge advantage versus Amy, versus all these big motor insurance companies. A big advantage. It’s one that insurance companies will never have.

And it means that eventually they could be forced out. Seriously, if you think about this purely on a logical level, information and data is the advantage, and those companies may never have that information and data that companies like Tesla have right now. Now here’s the thing, even though the vehicle insurance market is only valued at just over 800 billion U.S. dollars right now, which is well, well over a trillion Australian dollars it’s predicted to hit. $1.22 trillion in 2030. That’s at a CAGR of 7.2% and this is due to an increase in global automotive production and sales. Now with the insurance industries evolving role in the transportation ecosystem, the vehicle insurance market is projected to undergo significant changes in the not too distant future. In fact, they’re happening already. The rise in demand for passenger and commercial vehicles across the globe is boosting the global vehicle insurance.

Market and the increase in the number of traffic incidents that incorporation of strict government guidelines for the acceptance of vehicle insurance and the growth of international vehicle sales due to the rise in consumer per capita income with the major factors driving the global vehicle insurance market size. Furthermore, the adoption of self driving vehicles will increase the vehicle insurance market growth between now and 2030. The reason being it will go from 800 billion U.S. dollars to 1.22 trillion and Tesla. Is paying very close attention to that. Tesla already sell insurance in the United States. They already sell insurance in China. They’re about to hit the European automotive market to sell insurance there. They have a captive audience. There’s a good chance Tesla will go from selling around 1.35 million vehicles in 2022 to close to 10 million vehicles in 2030. And then they can sell insurance to every single one of those new customers. 10 million cars sold would be.

A massive percentage of the approximately 78 million cars sold per year worldwide and it would give Tesla access to a captive market. However, there’s one big reason what may happen is many people will walk away and say no, I don’t want Tesla insurance. Many people will say yeah I want it. However, Tesla will easily be able to get access to giving you a cheaper quote. You can just assess the customers that drive in a certain way and say let’s ensure them.

None of them are. Having accidents will give them cheaper insurance than our competitors, whoever they are, gecko, whoever the hell they are doesn’t really matter because we know these customers drive safely. They’re driven away, which means that they’re about, well, 95% less likely to have a crash. Therefore we’ll pretty much undercut anyone. For those specific customers that may be 40% of their customers and maybe 60%. But here is where tellers advantage lies, right? They have the ability to.

Actually access that data. Now, whether that’s legal or not, I don’t know. But more than likely what you’ll get to do is opt in. You’ll say to Tesla, well yes, you can have access to my driving data. If you want to sell me products, I’ll get a discount, right? I’ll get a discount on whatever it is. SpaceX Internet, I don’t know, get some free extra features that cost Tesla nothing. So some extra features in the car that Tesla can just do with an over the air updates and free games, whatever that is. At some point in time this is a market that Tesla will actually dominate.

And it’s for that reason they have access to the data that will enable them to dominate. Now, how would the average insurer know that you’re a safe driver? I personally think I’m not really that safe of a driver. I take too many risks. I drive up and down a dangerous Rd. every day where you’re much more likely to have accidents as a gravel Rd. on the side of a mountain. But my insurance company doesn’t know that. However, Tesla would. And that is the difference. That is an insurmountable difference. Now Tesla’s preparing to enter the European insurance market this year to provide branded.

Insurance for its vehicles in the region and the manufacturer is about to launch a brand in London and has begun looking for employees for it. This is a huge, huge thing because think about it, the average consumer goes and buys a new car, and it’s so much easier not to have to try and look for a quote, but to just get insurance directly when you buy the car from Tesla themselves. Tesla is seeking to open a European branch of its insurance business by registering in Malta. According to documents filed with Companies House, the company has already begun. Searching for the role of legal counsel to work in full stack in house in insurer in the firm’s London headquarters. According to a job posting on Tesla’s website, the person in this position will be required to build and lead the in-house legal function of the insurance company to guide through the legal and regulatory landscape of an insurer operating cross borders in Europe. Basically what Tesla want to do is maximise their earnings they set up in Malta, right? They make they pay less taxes. This is the whole point of why they want to set up in Malta.

Paintless taxes still sell insurance to people in Europe. Currently, Tesla Insurance operates in 12 U.S. states and in China, and it’s waiting for approval in several other U.S. states. The company understands its vehicles technology, its safety, its repair costs, knows those exactly, and eliminating traditional insurance carriers charges is what they will do now. Tasmanian says that Tesla Insurance provides a convenient monthly payment and reflects the company’s vehicles. Active safety and advanced driver assistance features which comes standard on all new Tesla vehicles, so that’s one big advantage. Look at Tesla’s safety score right? It routinely gets the best scores, especially in its safety assistance features. And those are the features that can help Tesla vehicles avoid a crash, meaning Tesla is less likely to have to pay out on this insurance. Tesla insurance actually uses real time driving behaviour and this means that the monthly insurance rate is calculated by taking into account the safety score.

With which each individual drives. Thus, the higher the safety score, the less the owner pays on a monthly basis. It’s genius. This encourages safer driving and it’s gamification. People love gamification and this will directly affect how much users actually pay for their insurance. Now, Tesla constantly adjusts the amount of each owner’s monthly installment based on the safety score and average driver could say between 20 to 40% and the safest drivers could save up to 60%.

Tesla is going to be one of the biggest players in the insurance market by the end of this decade. It aims to be. It has the data to do so, and I see it happening. Will they dominate the insurance market? I don’t know, but this is a $1.2 trillion market in 20-30 and Tesla is putting in place all the necessary steps to become one of the biggest players globally. There aren’t really any global insurance companies that operate in all these markets successfully, however.

Tesla could potentially be the first. Now let me know your thoughts on this in the comments, but I think this is basically free money. Tesla has the data and selling you insurance, well, it’s selling you nothing. Essentially. It’s simply selling you a product which you may never use. It’s kind of like free money.

Let me know your thoughts in the comments. Thank you for reading. Check my video on this below.

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