WHY TESLA’s INSURANCE BID MAY FALL SHORT

Automaker Tesla recently announced that it would offer its own Insurance product to Customers, but some experts believe the Car company might be biting off more than it can chew. While Tesla’s ambitious Foray into Insurance makes sense, as the company hinted that it would utilise the data it has access to in terms of driver behaviour to price Insurance, Industry leaders are skeptical about the decision. In a recent Shareholders meeting, BerkShire Hathaway Chairman and CEO Warren Buffet warned that Musk’s effort could end in failure just like the effort of General Motors who for a long time had an Insurance company called Motors Insurance Company. Tesla had before now tried to offer Insurance via a program called InsureMyTesla which was a disaster for some Customers.

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