My Portfolio
My Watchlists
Profile & Performance
Smart Portfolio
Find & Follow Experts
Top Lists
Top Experts
Make Better, Data Driven Investment Decisions
TipRanks tools are all you need to make data-driven investment decisions. Conduct comprehensive stock research, find new investment ideas, analyze your portfolio, and follow the best-performing Wall Street experts, with ease.
About Us
Plans & Pricing
Welcome

Tesla to Launch Insurance Program in Texas Soon — Report

Tesla CEO Elon Musk recently said that the company (TSLA) could launch its insurance program in Texas earliest by October, according to a report by StreetInsider.com. The program could be launched in New York in 2022 and see an international launch in the long term.

Musk said that the insurance rates will be based on customers’ actual driving history. Shares of Tesla closed 1.7% higher at $751.94 on Wednesday.

In a tweet, Musk said, “The regulatory process for approval to offer insurance is extremely slow & complex, varying considerably by state.” (See Tesla stock chart on TipRanks)

According to the documents submitted to the Texas Department of Insurance, Tesla could enter into a joint venture with Redpoint County Mutual Insurance for the launch of the insurance program in Texas.

The company launched its in-house insurance program in California in August 2019. The insurance saves drivers up to 30% in a few states due to Tesla’s understanding of its mostly vertically integrated vehicles, which traditional insurance companies do not possess.

Last week, Wedbush analyst Daniel Ives reiterated a Buy rating on the stock with a price target of $1,000 (33% upside potential). The analyst said, “The public relations and safety issues in China are a lingering headwind for the stock that was beginning to reverse course.”

Overall, the stock has a Hold consensus rating based on 12 Buys, 7 Holds and 6 Sells. The average Tesla price target of $697.90 implies 7.2% downside potential. Shares have gained 97.7% over the past year.

According to TipRanks’ Smart Score rating system, Tesla scores a 4 out of 10, suggesting that the stock is likely to perform in line with market averages.

Related News:
Horizon Bancorp Hikes Quarterly Dividend by 15.4%
Procore to Snap up Levelset for $500M; Street Says Buy
General Mills Posts Upbeat Q1 Results; Maintains Guidance