Tesla’s Strong Brand Gives It Unusual Expansion Potential

Tesla recently announced it will offer its customers car insurance. This move could add significantly to its per-vehicle profits, and could prove the first in a series of moves into other adjacent categories. Tesla could easily offer its affluent customers life insurance. Since it holds millions of dollars in customer deposits, moves into other financial services could make sense. This piece offers advice on how companies with strong brands should think about moving into adjacent categories.