PS Working on more quick and dirty bite-sized Substacks! Let me know what you think.
Working on my latest project, a multi-configuration Tesla stock price prediction model, I'm delving into various aspects, including Tesla's expansion across more than ten different business sectors. Interestingly, one such sector is insurance. Initially, I underestimated its significance, but upon further analysis, I've realized that insurance is far from being trivial in this context.
This model, with its decade-spanning scope and fully adjustable parameters, is revealing some unexpected insights.
Let’s dig in
First, Tesla Q1 premiums surpassed 2022 total!!! Wut?
Second, Tesla only operate in a very limited number of US States - So Far:
This is all about to change in 2023 with the addition of some HUGE states - AZ, CA, FL, Ohio!
Expansion Plans: Tesla's CEO Elon Musk has expressed intentions to offer insurance nationwide and eventually internationally, citing the current US regulatory structure as a challenge due to varying state regulations.
This data above does not include new expansion states just added
Some carriers are extortionate when it comes to offering coverage for Tesla’s but one company actually beats Tesla. Skip Farmers and AAA - they are the WORST!
Tesla Insurance Growth Rate
While I don't possess the data for 2023, it's reasonable to anticipate that the figures will exceed double those of 2022. This expectation stems from the incorporation of several new and significant states into our scope, including Florida, California, Ohio, and Washington.
For State National Insurance, the beginning value in 2020 is $47.5 million, and the ending value in 2022 is $217.6 million over a period of 2 years. We will use these values to compute the CAGR.
The Compound Annual Growth Rate (CAGR) for Tesla Insurance Service's direct premiums with State National Insurance Co. Inc. from 2020 to 2022 is approximately 114.03%. For 2023 even higher. This could easily be a billion-dollar premium insurance company! Yet another way Tesla is disrupting everything.
