Tesla analysts have had enough of Musk's funky forecasts Tesla is making wall street nervous. If wall street turns off the money spickets, the EV industry will be dead. Even with all the money that is being given to them, the industry is not responding like musk would like. Now I read they want to start their own insurance company to offer insurance to their customers.
Tesla Offering Car Insurance | Tesla Basically they're forming a captive insurance company. I can only see them doing this to hedge against their massive loss's. Their burning through money, but wall street is also sending it in by the truck load. They're going to spread their losses out, which help their earnings numbers for awhile. In about two years claims will catch up to premiums, then loss's can be exacerbated if not managed correctly. This tells me their having to use financial engineering to keep the ship afloat. This isn't about Tesla giving their customers insurance, as any insurance company will cover an electric vehicle. This is about keeping the wall street money coming in.
