given it probably will be exploring uncharted
territory if it’s able to dispatch fully autonomous
vehicles to pick up passengers.
Selling insurance will also provide Tesla with
another source of revenue as it tries to prove
it can consistently make money. The company
was profitable during the last half of last
year — the longest stretch of prosperity in
its history — but has lost another $1.1 billion
during the first half of this year. Those losses
could rise even higher if Tesla miscalculates the
risks of selling auto insurance.
Tesla’s disappointing financial performance and
escalating doubts about its future prospects have
caused its stock to plunge 35% so far this year.
Tesla believes it has learned so much about
the technology, safety and repair costs of its
cars that it will be able to figure out the proper
prices to charge for each policy. Its electric cars
are equipped with so many sensors that the
company could theoretically monitor whether
the drivers are prone to chronic speeding or
habitually engaging in other risky behavior, but
Tesla says it won’t do that.