Tesla Increases Leasing 74% YoY, Details Insurance Plan

Nonetheless, Musk reiterated that Tesla still meant to deliver 500,000 cars in 2018 and 1 million vehicles by 2020.

Tesla said it could offer the services by working with other insurance companies, and is also considering handling insurance in-house too. Indeed, there will be no more monthly payments and unexpected fix expenditures. Tesla is also enhancing its mobile fix service claiming that more than 80 percent of fix can be performed remotely at the owner's place.

The news was dropped Wednesday in an earnings call, and suggests that Tesla executives believe they are uniquely qualified to change the way new cars are priced and purchased.

Tesla has begun to bundle insurance and maintenance costs with their vehicles, offering a potential glimpse at the future of purchasing cars in the driverless era.

It's important to note that, like so many things in life, this service isn't free. Musk is so confident in the safety features of future Tesla vehicles with self-driving features that he is prepared to pay up in case accidents involving his cars lead to death, Mashable points out.

It's unclear how much the lifetime insurance and maintenance bundle costs. "It's our vision in the future we could offer a single price for the vehicle, maintenance, and insurance". Musk, on a conference call with investors, said, "According to our financial plan, no capital needs to be raised for the Model 3 but we get very close to the edge".

Rocketing insurance premiums are putting driving out the question for some people on lower incomes, which subsequently provides them with fewer opportunities in terms of both work and leisure.

"But if we find that insurance providers are not matching the insurance proportionate to the rest of the vehicle then, if we need to, we will in-source it, but I think we'll find that insurance providers do adjust the insurance costs proportionate to the risk of a Tesla", Musk said. If that is the case, the Tesla auto could really eliminate all or most of human-error road crashes. As to how many cars Tesla will crank out, the company promises 5,000 per week by "sometime" in the fourth quarter of the year, and 10,000 cars per week "at some point in 2018".

  • Arturo Norris