I believe the end game here is to offer FSD+insurance as a monthly subscription. Nobody would pay $200/month for FSD software package from get go especially if the software is not proven yet. But they will pay that much if it is bundled with insurance. I would even go as far as to say that the subscription to this package might also give the customer a discount on the car.
This is helpful, and a better way for me to see Tesla getting into the insurance business.
This doesn't address the need to build an insurance company from the ground up (or probably better, acquire some smallish auto insurance company that already has the state by state licenses, and insurance related business processes already established).
Something of a tangent, but still applicable in my mind.
I also see many business segments that Tesla can get into. And I'm also excited about them. But between Tesla Insurance and Tesla Semi, I also see two business that are much more than throwing your hat in the ring - it's not only building something (Semi) or deciding to offer a service (Insurance), there are other business and/or regulatory factors for getting into those businesses.
The obvious consequence - the company we know today isn't equipped to do those businesses. To gain that ability, Tesla needs to acquire or partner with existing companies or build a whole new division (company) to do the rest of the business.
On the Semi side, it's the difference between building a truck, and doing the service / repair and other stuff required for an income producing asset (vs typical light duty vehicle usage). The current Tesla Service infrastructure and processes aren't equipped to handle Semi. One vector being fleet buyers - I believe they operate their own internal repair and maintenance shops -- does that means Tesla is going to (finally) start offering training to others to do the repair and maintenance themselves, or is Tesla going to hire mechanics and place them at each fleet buyer's repair facilities?
Also Semi side - the parts delivery has to be much more robust than we tolerate with our personal vehicles (loaner cars do wonders here). Is Tesla going to have a small army of Semis positioned around the country, ready to loan out while current customer Semis are in for repair and waiting for parts? 1 week delivery for parts - I don't think that's going to begin to cut it with people that are purchasing an income producing asset. A 1 week delay means you've just lost ~2% of that year's revenue to your asset being sidelined.
These are processes others have nailed. The key (and I realize this could prove to be the stumbling block that leaves Tesla with no alternative) is that they need an acquisition or partner that is as committed to the transition to a renewable economy as Tesla is. If they can't find that partner, or a business to acquire, then they'll have no choice to build their own division (business) from the ground up.
