Part 5/8:
Tesla’s goal to sell 20 million cars annually by 2030 implies roughly 100 million Teslas on the road worldwide by then. Tesla expects that 80% of these owners will opt for Tesla Insurance by year’s end—an aggressive but plausible target given the convenience, cost savings, and integrated safety features.
Assuming an average premium of $1,900 annually (based on Paul’s example), the total revenue from Tesla Insurance could reach approximately $152 billion annually in 2030. Operating at a conservative profit margin of 8% (assuming efficiencies and lower costs achieved through vertical integration), Tesla could generate about $12 billion in annual profits solely from its insurance segment.