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Cyclical Savings: Tesla insurance lowering repair costs for customers, top execs say on earnings call

Toronto, Ontario — Tesla’s proprietary insurance platform has made its way into several U.S. states since its 2019 California launch, and now, top executives in a recent company Q4 earnings call claim that their model is actively lowering repair costs for customers.

First reported by Drive Tesla Canada, Tesla CFO Zach Kirkhorn and CEO Elon Musk spoke during the call on how, thanks to insights provided by its in-house insurance platform, the company is now able to design vehicles with low-cost repairability in mind.

“Previously we didn’t have good insight into [the cost of repair]. The other insurance companies would cover the cost, and the cost in some cases would be unreasonably high. So we have actually adjusted the design of the car, and made changes in the software of the car, to minimize the cost of repair,” Musk said during the call.

“We’re actually solving how to get somebody’s car repaired very quickly and efficiently and back in their hands quickly.”

Apparently only just now cluing into how the aftermarket repair process works, Musk added “it’s remarkable how making small changes in design of the bumper and improving the logistics of providing spare parts needed for collision repair have an enormous effect on the repair cost.”

Tesla’s full Q4 earnings call can be listened to below.

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