Tesla is expanding its footprint in the Chinese insurance sector with the creation of a new subsidiary, Tesla Insurance Brokerage (China) Co., Ltd. Announced on July 30, this wholly-owned entity boasts a registered capital of RMB 50 million (approximately $6.92 million) and is led by Tom Zhu, Tesla’s head of China operations, as its legal representative.
The new firm is fully owned by Tesla Insurance Services LLC, a foreign-owned enterprise managed by residents of Hong Kong, Macao, and Taiwan. This move follows the recent dissolution of a previous Tesla subsidiary in China, as noted by Chinese corporate data aggregator Tianyancha.
Before offering insurance products to Chinese consumers, Tesla must secure approval from the country’s financial regulatory authorities. This development comes in the wake of BYD’s acquisition of Yi’an P&C Insurance Co. in May, a Chinese insurer that underwent bankruptcy restructuring in mid-2022. BYD’s strategy aims to provide more affordable insurance for electric vehicles, which typically carry higher premiums compared to conventional internal combustion engine vehicles.
