Tesla makes a second foray into the insurance industry, with Zhu Xiaotong, the second in command, personally appointed as chairman, as car companies rush to enter the market

Less than 4 months after deregistration, Tesla has registered a new insurance brokerage company in China.

The National Enterprise Credit Information Publicity System shows that Tesla Insurance Broker (China) Co., Ltd. (referred to as "Tesla Insurance Broker") was established on July 30th with a registered capital of 50 million RMB. It is fully owned by Tesla Insurance Services Co., Ltd., with Zhu Xiaotong serving as the legal representative and chairman. Zhu Xiaotong, the senior vice president of Tesla, is the second in command at Tesla after Elon Musk.

In August 2020, Tesla established Tesla Insurance Broker Co., Ltd. in China, but it did not obtain regulatory license approval and was deregistered in April this year. When asked about the establishment of Tesla Insurance Broker again, Time Finance contacted Tesla China for an interview but has not received a response as of the time of publication.

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, told Time Finance that Tesla's new move this time may be related to the "green card" for data security obtained by the company in April 2024. With this qualification, Tesla may be able to leverage its advanced technology in cars and data security advantages to promote the development of its insurance business in China.

With the rapid development of the new energy vehicle industry, many car companies such as BYD, Nio, Li Auto, Geely Holding Group, and GAC Group have entered the insurance industry through establishment, cooperation, or acquisition, stirring up the new energy vehicle insurance market.

Tesla re-registered its insurance brokerage company

There have been several changes in Tesla's re-registration of the insurance brokerage company this time.

In terms of company type, Tesla Insurance Broker has changed from "Hong Kong, Macao, and Taiwan legal person sole proprietorship" to "foreign legal person sole proprietorship," and the registered address has changed from Shanghai to Beijing. Tesla Insurance Broker Co., Ltd., established in August 2020, was fully owned by Tesla Motors Hong Kong Limited. However, after the company was established, it failed to obtain approval from the financial regulatory authorities to conduct business.

In fact, since 2018, regulatory authorities have tightened the issuance of insurance intermediary licenses, and it was not until November 2023 that the applications for business opening of two foreign-funded insurance brokerage companies, BMW (China) Insurance Broker Co., Ltd. and AnGu Fangsheng Insurance Broker Co., Ltd., were approved. After a long wait, Tesla Insurance Broker was deregistered in April this year.

Also in April, Tesla obtained the "green card" for data security, becoming the first foreign-funded car company to pass the relevant national standards. On July 5th, Tesla Insurance Broker appeared in the list of enterprise name declaration and registration announcements by the State Administration for Market Regulation. At the end of the month, the company was officially registered.

It is reported that insurance products launched by Tesla in the U.S. market are often closely tied to users' driving data, with premiums calculated based on users' driving behavior scores. Tesla CEO Elon Musk has publicly stated that car owners who score above average in the safety rating system can save 20% to 40% on premiums, while those with the highest scores can save 30% to 60% on premiums.

Bai Wenxi told Time Finance that after Tesla established an insurance brokerage company in China, it can leverage its advantages in car technology and data security to collaborate with insurance companies to launch new energy vehicle insurance products, providing personalized insurance services to car owners There have also been some adjustments to the executive lineup. Previously, Zhu Xiaotong served as the legal representative, chairman, and general manager of Tesla Insurance Brokers Limited. In September 2023, the positions of legal representative and general manager were taken over by Wang Hao, President of Tesla China. Now, Zhu Xiaotong has once again assumed the roles of legal representative and chairman of the new company, while Wang Hao is not listed in the new company's executive team.

Zhu Xiaotong is a senior vice president of Tesla, previously based in China, responsible for Tesla's Asia-Pacific business.

Public information shows that in April 2014, Zhu Xiaotong joined Tesla as the Director of the China Supercharger Project, responsible for promoting Tesla's charging network construction in China. In December of the same year, he was appointed as Tesla's Global Vice President and China President. In April 2023, he was appointed as Senior Vice President of Tesla's automotive business, responsible for global automotive manufacturing and sales operations. Zhu Xiaotong is also considered as the second in command at Tesla, after Elon Musk.

In early May this year, several media outlets reported that Tesla planned to transfer Zhu Xiaotong back to China from its headquarters in Texas, USA. On May 23, the Tesla Shanghai Megapack Superfactory held a groundbreaking ceremony in Lingang, Shanghai, which Zhu Xiaotong attended.

Automakers are actively entering the insurance industry

In recent years, with the rapid development of new energy vehicles, more and more automakers are entering the insurance industry through establishment, cooperation, or acquisition, leveraging their deep understanding of automotive technology and user data to explore insurance products and services that better suit the characteristics of new energy vehicles.

Recently, the movements of Sailes have also attracted industry attention. According to Tianyancha, Sailes has submitted trademark registration applications for "Sailes Auto Insurance" and "Sailes Auto Finance". Currently, these trademark applications are awaiting substantive examination. Industry insiders believe that this may indicate that Sailes is actively exploring entry into the insurance services sector.

BYD's insurance business layout has also made substantial progress. Following the acquisition of Easy Insurance and its renaming to BYD Insurance last year, in May this year, BYD Insurance obtained the qualification for compulsory insurance business. Shortly after its establishment, BYD Insurance achieved profitability. The latest solvency report shows that in the second quarter of this year, BYD Insurance achieved insurance business income of 67.2612 million yuan, with a net profit of 6.0372 million yuan.

Previously, Geely Auto participated in the insurance business by investing in insurance companies. At the end of 2020, Geely Holding reached a share purchase agreement with the major shareholder of United Prosperity Insurance, and after regulatory approval, became its second largest shareholder with a 33.33% stake.

In contrast, new energy vehicle startups choose to enter the insurance business through the acquisition of insurance intermediary licenses.

Among them, Nio acquired Huiding Insurance Brokers Co., Ltd. through its wholly-owned subsidiary Anhui Nio Data Technology Co., Ltd., and renamed it Nio Insurance Brokers Co., Ltd., thereby obtaining an insurance brokerage license; Li Auto acquired Yinhua Jian Insurance Brokers Co., Ltd. through full acquisition, obtained an insurance brokerage license, and renamed it Beijing Li Auto Insurance Brokers Co., Ltd.

Guo Yinlong, Operations Director of LoveCard (Shanghai) Business Consulting Services Co., Ltd., told Times Finance that although insurance brokerage firms do not have the qualifications to develop insurance products, they can collaborate with insurance companies to tailor exclusive insurance products for consumers based on consumer needs and business scenarios directly related to consumers In his view, compared to the high threshold and huge capital investment required to establish an insurance company, the barrier to entry for insurance intermediary companies is relatively lower. This allows more enterprises to participate in the insurance industry with less capital investment