Elon Musk Says Tesla Will Launch A “Compelling” Insurance Product

Tesla chief executive Elon Musk says the electric car manufacturer is working on an insurance program.

While speaking to reporters on an earnings call this Wednesday, the entrepreneur said Tesla is working on an insurance product but failed to provide many details about the program.

“The answer is yes we are creating a Tesla insurance product and we hope to launch that in about a month. It will be much more compelling than anything else out there,” Musk said.

When further quizzed about the safety of Tesla’s Autopilot system, Musk said the car manufacturer provides detailed information to insurance companies to help with rates. It will, therefore, incorporate similar Autopilot information when providing its own insurance to owners.

There’s no hiding your driving habits from Tesla

“We do give some more detailed information to insurance companies to help with rates. And obviously as we launch our own insurance product next month, we will certainly incorporate that information into the insurance rates,” Musk stated.

Musk went on to reveal that Tesla has access to “direct knowledge of the risk profile of customers based on the car,” and said that this is very useful for the brand. Musk added that Tesla customers who opt for the car manufacturer’s insurance policy will need to agree not to drive their cars in a crazy way. If they do, “the insurance rate is higher.”

CNBC contacted a Tesla spokesperson seeking additional information about the company’s insurance program but nothing extra was provided.