Tesla sets up $6.92 million insurance brokerage in Beijing

Tesla's new insurance venture: Tesla has recently established an insurance brokerage in China, according to a national corporate database. The registration, completed on July 30, reveals a new company with a capital of 50 million yuan ($6.92 million) situated in Beijing's Central Business District.

Tesla resumes insurance push

This signals Tesla's renewed attempt to secure approval for selling insurance products in China. The automaker had previously pursued this goal with a registration in 2020 but withdrew it in April 2024.

The challenge of insuring electric vehicles (EVs), which are costly to repair compared to traditional combustion engine vehicles, has been a significant barrier.

By offering insurance directly, Tesla aims to provide more affordable EV insurance options, which generally come at a higher cost than policies for gasoline-powered cars.

BYD acquired insurance firm

In contrast, BYD, Tesla's major competitor in China, took over a bankrupt online insurance company, Yi'an P&C Insurance Co, last May. Despite ongoing tech-related tensions between China and the US, the country continues to support Tesla.

The automaker plans to establish a data training center and launch its Full Self Driving software in China this year. In April, Tesla received a nod from China's top auto industry association, confirming that its data collection practices were compliant.

This endorsement has led to Tesla vehicles being allowed into certain government and military areas previously restricted.

(With Reuters Inputs)