Tesla sets up brokerage to offer insurance in China

The newly established company has a capital of $6.92m.

Tesla is expanding its business in China by registering an insurance broking firm in Beijing at the end of July, according to a national corporate information database as reported by Reuters.

The newly established company, located in Beijing's Central Business District, was registered on 30 July with a capital of $6.92m, as noted in the National Enterprise Credit Information Publicity System.

This move suggests that Tesla may be renewing its efforts to gain regulatory approval to sell insurance products in China. 

The US automaker previously registered a similar company in 2020, but the registration was removed in April this year. The company has not yet commented on this latest development.

Electric vehicles (EVs), including Tesla's, tend to have higher insurance costs due to the expense of repairs compared to conventional combustion engine vehicles. By offering insurance directly to consumers, Tesla could potentially reduce these costs, providing a more affordable option for EV insurance. 

Tesla's major Chinese competitor, BYD, has also been expanding its footprint in the insurance sector, having acquired the bankrupt online insurance unit Yi'an P&C Insurance last May.