Set Disruptors on Kill – Why Tesla’s insurance move will shake up related industries.

10/24/2017

Captain’s Log, Stardate 2017.10 Strange news from the Tesla system. It’s custom insurance deal called InsureMyTesla is rolling out to all 50 U.S. states. Under the program Tesla owners can get a customized insurance package taking into account the unique safety features of the car.

I hung out with a group of Tesla owners in the parking lot outside Best Buy Sunday morning, and needless to say they seemed pumped at the prospect. No word so far on a Canadian launch.

The program takes things like the car’s autopilot and 5.3 star safety rating into account. Other partners around the world include AXA in Hong Kong and QBE Insurance in Australia. Electrek had the exclusive announcement this week.

This is a big sea change and will ripple far beyond this announcement and through markets in every sector. in the U.S. auto insurance is a  $199 billion market (see below). The cost of car insurance is a factor in every car purchase.

A significant savings in insurance makes a Tesla more affordable to a bigger segment of the market. Other players in the insurance field will scramble to partner with the company and/or develop new auto policies for safer electric and self driving cars.

I’ll be watching to see how the details of the plan shake out, I think this will be transformative and early moves could catch a wave.

Bringing this back to your interests, as the markets for electric vehicles matures, the value of the commodity supply chain will rise in value. Now’s a good time to look long-term at Vanadium, Lithium, Graphite and other rare earth stocks.

We’ve spotlighted companies in this area recently. Chris had a piece on E3 Metals. I wrote about Berkwood Resources last week, and we talk about Nano One as well.  You can look at those and get a sense of some of the market movers, but dive in yourself and grab some undervalued commodities before the sharks smell the blood in the market.

We’re witnessing history. The phase-change is happening before our eyes. Mass transportation is transforming before our eyes, and battery components will be the new oil. Sink your wells now.

FULL DISCLOSURE: Berkwood Resources and Nano One are Equity Guru marketing clients. I do not own stock in any companies mentioned.

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