Tesla Renews Bid to Break Into Insurance Business in China

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A Tesla store in Xiamen, Southeast China’s Fujian province on July 30. Photo: VCG

U.S. electric-vehicle (EV) giant Tesla Inc. is seeking to relaunch an insurance broking firm in China to capitalize on the country’s expansive insurance market.

The insurance intermediary was registered in Beijing last week with Tom Zhu, Tesla’s senior vice president of automotive, named as the chairman, public business registration records show.

In accordance with local regulations, the company needs to obtain approval from the National Financial Regulatory Administration, China’s top financial regulator, before providing insurance broking services.

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Tesla is seeking to relaunch an insurance broking firm in China, registered in Beijing, with Tom Zhu as chairman.
The firm needs approval from China's National Financial Regulatory Administration before operating.
Tesla's first attempt in 2020 in Shanghai closed in April 2023; Tesla's rivals BYD and Nio have also entered the insurance sector.

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Who’s Who

Tesla Inc.: Tesla Inc., a U.S. electric-vehicle giant, is seeking to relaunch an insurance broking firm in China. The intermediary was registered in Beijing with Tom Zhu as chairman. This is Tesla's second attempt after a previous closure in April 2023. Tesla also offers insurance in the U.S., using car data for driver profiles and insurance rates, potentially adding significant value to its car business.

BYD Co. Ltd.: BYD Co. Ltd., a Chinese electric vehicle (EV) manufacturer, launched an auto insurance provider last year by taking over an insolvent insurance unit from scandal-ridden conglomerate Tomorrow Holding Co. Ltd. This move aligns with the trend of EV builders entering the insurance market.

Tomorrow Holding Co. Ltd.: Tomorrow Holding Co. Ltd. is described in the article as a conglomerate that has faced scandal. BYD Co. Ltd., a Chinese EV manufacturer, launched an auto insurance provider last year by taking over an insolvent insurance unit from Tomorrow Holding Co. Ltd.

Nio Inc.: Nio Inc., a Chinese EV startup, entered the auto insurance sector by acquiring an insurance broking company last year. This move aligns with a broader trend of EV makers venturing into insurance to leverage vehicle data for setting rates and improving services.

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