Warren Buffett on the risk from Tesla's self-driving tech to Berkshire's insurance businesses
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- เผยแพร่เมื่อ 3 พ.ค. 2024
- Berkshire Hathaway Chairman and CEO Warren Buffett presides over the 2024 Berkshire Hathaway annual meeting. Watch the full coverage of Berkshire Hathaway annual shareholders meeting on www.cnbc.com/.
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I don’t own a Tesla but just got to try the latest FSD and it’s absolutely incredible. Under appreciated (for now) and profound technology.
It's incredible compare to earlier versions but still stuck at level 2 with many issues yet to be solved.
@@bobbybishop5662 its incredible related to everything else.
Every other car will have L2 in a couple of yrs.
I tried it as well and was mind-blown.
I own a Tesla car and stock. I tried FSD during the trial. First awakening was FSD can't reverse. Second was it can't read signs that say "Authorized vehicles only" and proceeds to continue. Next, was it clips curbs when turning and scratching up the wheels. It'a not yet ready despite all the hype. It is genius though to charge people to be QA for the company.
Warren sounded a bit tired. Long live the king. He is a national treasure
It was a hard day for him and many, Charlie wasn’t there. He was literally stronger than me Saturday.
@@MatthewMS. Yes you could tell he missed Charlie
He is sounding like he is 90 now
20 years ago, I followed Warren's advice, stayed away from AAPL, Steve died I missed out 😢. 5 years ago I followed my own analysis, bought TSLA. 😊
Buffett never asks anyone to follow Berkshire’s investments. Your goals are yours and long term Berkshire shareholders’ goals are theirs
Smart man. TSLA a great tech company. Just wait when Starlink gets fully functional. Musk has the leading hi-tech company of the world. There’s too much to cover in a post.
You just got lucky. If you are still holding $TSLA bag in hope of FSD, your luck will run out. I bought Tesla stock 5 years ago too, but sold 2 years later at 20x gain. It's been dead money for the past 3 years.
ironic because that's how warren made majority of his wealth was through AAPL
I invested 200k in January 2020 and no regrets. Tesla technology is number one.
After having Geico insurance for over 10 years I finally shopped rates and switched to another stable and well known company, paying half that I was at Geico. I’m not the only one who got tired of overpaying.
I saved $Thousands , by switching to TESLA ins , in 10 seconds.
Which company so we can save money too
@@MrPayne134 I switched to Progressive. I have all the same policy limits and deductibles and went from paying 190 a month to 80. I wish I had switched sooner.
Same here.
Progressive just adjusted me 80% up and i am a safe driver, i may switch to Geico now...
Surprised to see Buffet giving a nod to Nader. For those unaccustomed, Ralph Nader was a major factor in automobile safety regulations and many of the things we take for granted these days like seatbelts and airbags are standard fare today thanks in no small part to Nader. The auto companies fought him tooth and nail over this too to save money. Great documentary called An Unreasonable Man that details his many positive exploits.
Buffett definitely tiptoed around this question. If Tesla FSD is truly effective, similar decreased business will occur in collision repair, police ticket incomes, ambulance chasing attorneys, etc. Fewer "totaled" vehicles means fewer new auto sales, but increase in service and maintenance as cars will have an uptick in life expectancy. Fewer vehicle deaths and injuries, etc.
Im a huge Buffett fan but i notice how his tone of voice and body language shifted to a bit of nervousness when he replied to this question. Particularly alsoAJs did
He’s 93 years old so cut him some slack. I’m surprised he doesn’t have dementia yet and is still articulate
@@JimDoe-lp3ilhe eats Big Mac and drink coke all the time and 16oz prime rib daily.
He should go home.
The question was just silly.
He talked this way the whole investors meeting. He's old.
I just became a huge fan. The reason why Warren Buffet is so successful is his heart. He thinks about everyone not just his own success. Love it! Learn from the greatest!
These guys are upset that there won't be as many accidents lol
I've had a FSD Tesla for 3 years. Tesla is getting very close (within the next 3 years I believe) with every update they release. Honestly, my only problem with it at this point is it's too cautious. If they can make it more confident, I truly believe Tesla will have achieved full self driving with cameras only. Additionally, I live in Phoenix where there are self driving Waymo taxis (no driver). Driving will be optional within the next 10 years. Whether you choose not to buy a car and only use autonomous taxies or you buy a car and it drives itself. Either way, we're closer to that reality than people think.
Can I ask do you now see lower insurance costs.
Still, You will never know when it will hit the wrong way. The faster it goes the worse will compare to skillful drivers as variability increases. 5 decades from now who knows, at which point we may be using flying cars.
@@anthonyballog8026 Of course not.
Waymo vehicles use pre-planned, pre-mapped routes in what they call "zones", and only operate when their conditional window is met. Rain is an issue - which is great for Waymo in Phoenix, I guess. I'm not knocking Waymo. Great idea and product. But AI managed FSD is going to take some real effort. It'll happen, but maybe 3 years is a little optimistic. That's all.
I do occasional 1000 mile drives. Would love to just get in and trust the tech to do the long stretches (I end up on I-95 for nearly 700 miles straight).
edit: obviously won't be doing that long drive in a Tesla. The recharge times take too long. I can make the drive in just under 14 hours now. Tesla would increase that to almost 16/17, assuming the chargers are not backed up (the ones I see along the way often are, but I only see the ones in crowded areas near the highways stops I take).
Complete self drive cars are not for at least 10 years. Self driving aids that help the driver are here and they will become more powerful but that is different.
Cost will come down significantly lower if accidents are reduced.
The reason Tesla Insurance not available in all states because of individual states regulations requirements. It would question of when not if.
BS!!!
Tesla FSD is being offered in CA whlile it’s lawyers keep telling regulators they have no self driving cars on the road!
Tesla doesn’t offer insurance because it relies on blaming customers for all accidents and damage!
Every other car will have an L2 in the next couple of yrs, then we'll see if events go down and how Tesla compares.
Its a net positive. Accidents go down, lives are saved, less money is paid out.
and less money coming in.
Insurance companies seeing AI take their jobs now. LOL I hope it does happen
Less accidents but as the man said, each accident is more expensive.
And Mr. Buffet as always is transparent about it - no sugarcoating for investors.
Warren is a business pioneer. God bless you Mr Buffet and thank you for your contribution.
It’s so empty without Munger.
MUNGER , is in his PEDO paradise.
Warren's answer to the question on reducing crashes with autonomous driving was excellent, IMO. If it happens, then it will be a net positive for society, though not necessarily for GEICO, or any other auto insurer. Luckily for BH investors, autonomous cars are not going to happen anytime soon. Five or six years ago, auto insurers and investors were all aflutter with worries their core business was about to be hollowed out by the imminent arrival of autonomous cars, rendering third party liability insurance redundant. Well, that talk has died , with the realization of how difficult it actually is to produce L5 vehicles ( i.e. actually autonomous). Musk's furious attempts to spin his FSD product as a real thing, to support the growth valuations that Tesla enjoys, is increasingly wearing thin, with more ppl seeing through the hype. In case any Tesla fan boys/gals take offense at me calling BS on "FSD" , and who may point out that Tesla has 10s of billions of miles driven , and that much more data than any other OEM, and ergo, closer to L5 than anyone else. Well, i say, if you have that many miles under your belt, and you still haven't solved the problem, you are never going to solve the problem, with that approach. GM's Super Cruise is not L5, more like L2.5 , but it actually does what it says on the tin, nothing more, and nothing less. That's a real product, not magical fairy tales.
Tesla is going to insure their own car.
TESLA ins , is the BEST Insurance.
So how is that going to work when a bad/rogue/hacked version of FSD eventually rolls out and multiple hundreds of thousands of crashes happen, therefore collapsing Tesla itself
yeah they already do in states that allow
Did you ever have to file a claim? what did they say, what are the deductible and coverage terms, your statement is basically adding nothing.
@@fidgetspinner343that would practically be impossible if you know how LLMs and neural networks work.
I think that was a poor response from all members on the panel
I purchased 375 shares in January 2020 and knew it was a 10 year+ investment . Tesla's technology is only gaining momentum.
The caption for this video is very misleading. TH-cam trying to scare investors out of Tesla when warrens words were actually positive about Tesla
Indeed. The question was just silly.
Only AI models can't have any bias per Biden mandate. Everything else in America are allowed to be biased!
CYBER-CAB is the new product Tesla is working on. It's a driverless taxi. Likely to cost half or less per mile than Uber. Car insurance companies will ALWAYS make profits because insurance is mandatory on public roads. Tesla will save lives more lives. Everyone wins.
Who cleans the puke out of a robo-taxi?
FSD and Atnomus driving will cut down accidents and fatalities, ultimately reduce insurance rates and hurt insurance company business.
and kids will be able to play in the streets without fear of getting run over.
Great for the kids, not so great for everyone stuck in their cuckmobiles.
Tesla stock swings too much to calmly accumulate and hold, After buying TSLA shares for just over 10 years, i'm struggling to make gains presently. How do i adjust or revamp my $2M portfolio? or should i consider some defensive investments?
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at the worth of your portfolio, you should consider financial advisory.
I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has just 5X in barely 5 years, summing up nearly $1m after subsequent investments to date.
This caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t really know how to find one.
Monica Shawn Marti is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
If fsd becomes really successful and is wildly adopted by 80% vehicles on the road，insurance cost will plummet.
Every other car will have an L2 in the next couple of yrs, then we'll see if events go down and how Tesla compares. Personally i don't think there is tech replacement for stupidity which will still happen a lot the more people get their attention out off the road.
Electric Jesus always over promises. Buffet invested in BYD.
@@navsofour2892FSD is not L2. L2 is just driver assist, fancy cruise control. FSD is an entirely different beast.
@@mikeplateOh it is! Tesla legal team admitted in December 2020 to CA DMV!
@@mikeplate "The naming is controversial, because vehicles operating under FSD remain at Level 2 automation and are therefore not "fully self-driving" and require active driver supervision. FSD adds semi-autonomous navigation on city streets and the ability to respond to traffic lights or stop signs." I know what i talk about but just googled on AI just in case. People need to read the fine print.
Warren Buffet can certainly boost Global Economy by contributing in Cloud Software.
It's refreshing to hear a billionaire say, 'good for society is what we're looking for'. Even if we have autonomous driving and accidents are reduced to zero there are emerging threats to property such as extreme weather events that will counter whatever savings are realized.
He's been saying that sort of thing for years but he doesn't do squat. Even as an old man with nothing to lose he chooses to sit idly on the sidelines and just rake in profits. His deeds don't match his words.
Its getting to the point with all the sensors in cars and weight saving thin aluminum that if you even phart on a fender the vehicle is totaled. So while accidents may go down the cost per is still going up.
This reminds of the moment when Neil Armstrong and co. were saying privatising space travel wouldn't work...
Hate to disagree with Warren but AI is on the exponential curve. FSD is around the corner. Car insurance will get gutted.
(To Ajit's point, elec cars are already cheap and FSD is software.)
Tesla FSD has been around the corner for five years now and there have been ZERO submissions of evidence to regulators that FSD has any ability to drive safely. Waymo and Cruise submitted real world data for several years before getting approval.
Only a government can get away with killing astronauts.
If there are less accidents, even with lower fees, profit soars! BUT, the biggest cost to insurance companies is car theft! Stricter laws against theft and better technologies should be applied to bring down car theft.
What those buckets are for can anybody tell me pls
To put their dentures in
Ice buckets for water bottles.
If accidents go down 50% loss ratios will plummet as well. Also Ajit has a great point about complexity of technology increasing the repair cost per accident. Sometimes it’s cheaper for the carrier to declare a total loss so it might actually make premiums on these kind of cars go up and not down.
TESLA , goal is to build SAFEST cars on EARTH.
The end of Geico car insurance :)
last speaker made a good point. to paraphrase, when tesla self-driving car gets into an accident, the cost to repair/ replace is much much higher than your average lower end cost car and therefore insurance will justify maintaining the status quo on the cost in one way or another
Reminder for me to watch this video in 2030
If you want to invest with Buffett, you must first live to be 93years old, drink Coke, and still have a clear head. Very few people can do this
So “Ralph Nader did more to help the American consumer” than anyone! Thats good to hear.
Best case scenario autonomous cars are still decades away from replacing most regular cars.
Finally, someone in business said something positive about Ralph Nader….wow.
I think this will actually be good for car insurance companies since you will still need insurance and they can basically participate in a form of price-fixing with one another. Also in the scenario where there is an autonomous car that is far safer than a human driver there will be less accidents which means less insurance payouts.
Well, has there ever been a connection between premiums and the actual cost for the service…
If Tesla brought down the cost of its vehicles and the repairs then it might be doable at that point but there's a long time horizon of proof that needs to happen before anything significant would take place bringing down insurance premiums.
The beauty with FSD is you don’t have to have it but why are people trying to stop it, it’s progress we’re after so let progress happen, some people are just money hungry
If Accidents go down, so do insurance payouts though.
That's exactly what my first thought was. Imagine how much they pay out for fatalities.
Yes, but the customer pays less for it.
If the margin is the same, and the volume is halved, your business has shrunk!
But even worse: your competition Tesla Insurance, has so much more info on the customers, the drivers.
But only for human drivers. Everyone eventually will have the same info about the RoboTaxi.
if accidents go down then the price for insurance would plummet? competitors could offer crazy good rates knowing they won't have to cover as much. The whole model/industry becomes so much less profitable. In theory a fully automated self driving world eliminates accidents pretty much altogether, which is what would form the basis of prices plummeting from now then to reach that point.
Sounds like Buffet sees the vision and is prepared to buy Tesla stock at least as a hedge to his large insurance stake. Not too far away from that snowballing into him understanding the whole Tesla story. His endorsement gives all the traditional investors the green light to consider Tesla as well. One domino at a time.
Half the frequency but double the severity. Sounds like higher volatility.
Severity is the wrong word. The cars just cost more to repair.
@@rschulzejr Severity will go up for sure, only unable drivers see the use of fancy automation useful. That is a way higher risk group than skillful drivers which have near zero events as of today.
No mention of the insurance challenge of fully autonomous vehicles. However, from what was said, if they’re safer then there should be no insurance issues.
I’d rather see money shift from insurance companies to equipment providers, if the auto accident deaths go down
Does Warren buffet have an auditorium for an office?
Sad to see charlie not in the show…
Buffet invested on BYD Chinese EV manufacturer.
I get it, the legend is always a legend. Who is going to the magnificent hero by the end of 21st century, meeting obligation like many.
Although Warren Buffett has a reasonable if tentative response, you have to keep in mind that Warren's investment in BYD is in direct competition with Tesla. BYD's policy is that self-driving (and therefore reduction in accidents through automated driving) is not possible. There is plenty of old data that shows FSD has many fewer accidents, but Tesla needs new data focusing on how safe FSD V12 is compared to non-automated driving.
Something that complicates that study is that non-automated driving of Teslas has terrible statistics because the cars are so powerful; many Tesla owners drive way too fast. FSD users don't drive so fast. The car slows itself down to match the road, weather and other conditions. That's not to way the current V12.3.6 is perfect.
Should compare to accident rate of taxi drivers not the national average
Read "1,000% Returns: Taking Advantage of the Stock Market's Gross Incompetence." And "Generational Wealth: Beginner's Business & Investing Guide."
Never have I heard Warren stumble as much as in this one 😂
So Berkshire can make a profit on fewer policies. That is the answer. Having not seen Warren in a while I do think the company needs a succession plan.
Self driving humans❤❤🎉🎉
The old man is very good at implicitly talking up his own book.
All I can say right now owning a Tesla vehicle is FSD is not accident free proof. It still makes mistakes. With much more humans driving cars vs FSD driving the cars, insurance rates won't change for a while.
So accidental rate dropped so significantly for the last few decades but insurance premiums keeps coming up and up? Makes total sense!!!
Its called fraudulent claims and inflation.
Parts and material cost went up, inflation, labor cost went up, same with homeowners insurance, have you been living under a rock?
Tesla isn’t toying with insurance. They do it
If prices of insurance are more affordable perhaps more people will take it out?
ATM its too expensive for the average middle to lower class economically repressed person.
People who are in a desperate situation will always forego insurance for food, shelter and education.
The self driving taxis make sense if theyre reliable and safe especially if they're paid for directly by governments as a fleet incl the insurance. and run mainly on solar.
Could earn advertising revenue as well from the entertainment system inside.
Would look tacky if advertising is on the actual car.
Otherwise a carpooling type situation where 2 to four owners perhaps in the same family neighbors or friendship group who live close by pool resources to buy one and it works for them during the day as an autonomous taxi.
A car that actually earns its keep could have its advantages.
On the plus side Hijacking and vandalism insurance would have an upswing.
The EV sector charging Up still in May. Tesla green Friday. FSRN up 148 % month .. Fisker with 24 Dealerships Globally. Polestar.. Joby Evtol Jets...EVTL . Vertical Aerospace...Plug... EVGO, more.
Assuming repair costs are equal for Tesla and other manufacturers per accident shouldn’t the reduce incident rate drop premiums? Tesla insurance IMO hasn’t been successful in the US because it is state regulated and hard to get admitted to states because of existing insurance and auto lobbies
I have a Tesla and use Tesla insurance (better price).. not GEICO (too expensive).
Did you ever have to file a claim? what did they say, what are the deductible and coverage terms, your statement is basically adding nothing.
Warren owns millions of shares of BYD, the Chinese auto company. Warren is not a techy at all. He is definitely old school. Tesla full self-diving will essentially eliminate all traffic collisions.
Of course everybody’s looking out for their cash flow. If there’s less accidents, then he’ll probably have to lower insurance rates bad idea.
tsla king
Love Warren Buffet and he is one of my favorite business teachers. But, I just can’t bet against Elon Musk…he only goes after impossible tasks, and he always wins.
Like Hyperloop? 😂
@@jacqdanieles That was a side project for Elon 😑
@@Jbucks24 someone said "always wins" ... guess we need to modify that to _"always wins, unless its a side project"_
Give Nader his credit. Unsafe at any speed changed the world.
Insurance should not be both legally mandated, as well as being able to influence public choice on par with a dictator. When do we stop letting other people's money dictate our lives?
but climate change related insurance will offset any loses from self-driving
Lots of flooded cars in Texas
Did I just hear them admit automated Teslas are safer vehicles? Maybe the CNBC old heads will finally listen…
There is no risk from Tesla self driving since there is and never will be Tesla self driving. There's Tesla Level 2 driver assistance and that's nowhere near level 5 self driving cars.
He couldn’t talk his way out of that one
Lower accident rates means lower payouts. Sounds like it might be a wash.
You mean, with Tesla self-driving perfection, insurance claim frequency will go down but severity will go up, and overall cost up or down would be unknowable? The whole society's auto accident costs will go down, and hopefully near zero -- Elon wants to see no accidents involving Tesla. GM still will be making cars and may still run into Tesla.
Severity will go up for sure, only unable drivers see the use of fancy automation useful. That is a way higher risk group than skillful drivers which have near zero events as of today.
@@navsofour2892 In reality, the more experienced a driver is, the higher the possibility of causing accidents due to their overconfidence and laziness.
@@mylovev3v Experienced drivers are in fact avoiding accidents "in progress" a good portion of the time. Your type and your sorroundings would be better off with automation, but then only up to a certain point.
@@navsofour2892 That's a good example, good driver class pays less in insurance because of lower cost to insurance. There are real events that shows when the whole society has less accidents, the insurance cost dropped -- during covid, there was a mandatory staying at home order and the insurance cost dropped by 10%. Tesla definitely could potentially lower insurance cost.
@@zhli4238 It remains to be seen there is not enough data about it, bots may induce other variability or increase severity so it is a zero sum or even negative game, which is what these people are saying. The B-737max is a good example.
What happens to doctors when doc McCoy has us all living forever 😂😂😂 that will happens about the same time
fully autonomous driving has been 2 years away for the past 15 years
I drive FSD daily for last 2 years. It drives me end to end. What are you talking about?
Truly clueless
Tesla (what is it doing now) drivers become more lax as the tech gets almost good enough so accident rate doesn't improve or the quality control costs go up.
We have it on two cars and I can tell you it has improved exponentially in the last year. Tesla's V12 vs. the previous V11 versions are night and day different. It's astonishing. That's the impact of AI writing the code vs. humans writing millions of "If-Then" scenarios. We go on an hour long drive and maybe have to intervene once or not at all. It's incredibly human like in its ability to handle weird situations. And just think...this is the WORST is will ever be. If you haven't tried V12 you should give it a try.
@@unclejoe8279 The data doesn't match your assumption. They make the data public. There hasn't been a single death since FSD v12 came out when it was engaged.
So much about insurance , not the fact that it saves life😂
Always money first at WS
Textbook persuasion 101. Acknowledgment of the opposition then discredit the evidence of the opposition. Tesla software reduces accidents. Acknowledgement. BUT (discrediting) the cost of few accidents skyrocketing.
The insurance companies will keep their profits. They are charities. If Tesla reduces accidents, that will not result in lower insurance rates.
But before prices come down…whooooo weeeee all the insurance bills and none of the outlay until it all catches up.they will have their best years ever…then it will begin to be destroyed
The Saltet nuts on his table tells the whole story
Is that a box of See's Brittle? haha
Elon Musk runs a company entirely on his personality. Warren Buffet runs a company with 150 billion in cash and disclosed insurance reserves to match.
These two clearly do not understand the shift that is occurring right now.
WE ❤❤❤❤❤❤ TESLA
Cross country FSD coming in 2016 per Captain K!
Tesla's insurance is much more expensive. From a cost perspective, it doesn't matter whether Tesla reduces accidents. It's Elon Musk's way of marketing his products.
We have two Teslas and I got Tesla insurance for my wife's car but kept our old policy for my car as an experiment. Tesla insurance is much less than Allstate (which matched the Geiko quote I got). When a rock damage her car they were very responsive. They let us choose where to get it fixed and mailed me a check immediately when the repair was done.
I have Tesla insurance. It’s much less expensive than the alternatives.
@@jasonbernstein2 there has to be a reason for that.
Well uh if ah ih ha ah ih d buh mah wah sh. 😂 jk (he the greatest. A lot of smart people talk this way.)
Tesla is disrupting everything too fast for the hedge funds to accept, much wealth will be lost once they realize many industries will soon be obsolete. It’s my belief that this is why Elon is being attacked for not going along with hedge fund wealth. This is also probably why Fidelity is delaying proxy materials from being released to retail investors like myself, as of May 6th still can’t vote.
some tap dancing going on there, its coming and they did not to see it coming.
Absolutely. But given their age they are probably confident that they won’t be around to deal with the consequences
Buffet famously declined to invest in Microsoft (according to Bill Gates) because he never could understand the software business. There’s no shame in admitting to ignorance. Buffet uses the metaphor of a baseball player at bat for investing. Investors have it easier than batters because unlike batters, they can stand waiting all day on the plate letting ball after pass by, only swinging when they are sure it’s a strike. And if you miss a few easy pitches, it’s no loss. More will come.
@@mcRydes He invested in Apple though. And he was right about software think about the decades of headaches people had to go through for using half baked beta software which, is what Microsoft ever produced to the public.
It's laughable to think that self driving cars will be on the streets within the next 25 years. It's real easy to have a way more where massive investment and safe guards create less accidents statistically. This is new tech that wants to pass regulatory approval so they will only implement in the safest scenarios. Try putting the cars on boaton streets in the middle of a nor'easter and we will see if people have more or less accidents than the self driving vehicles.
They are already in use by Waymo ffs.
@bobbybishop5662 In San Francisco, in grid like streets, that they have been testing for years. 1 of the 2 companies operating lost its license because of all the problems with emergency services it caused. Tesla is already under scrutiny for its false claims with full self driving. Nobody in the industry thinks autonomous vehicles are any where near ready for mass adoption.
We should do everything to lower car accidents
Who cares about profit and business. It's such a wrong way to look at money at the price of human life.
How about not giving away licenses to everyone that cannot show min skills and comfort to drive? We could raise speed limits for more efficient commute and lower emissions too.
@@navsofour2892Has nothing to do with the Autonomous driving conversation/argument.
What are you going to do? make an autonomous vehicle go to the DMV for a driving test?
Also, your pov stands from the idea that driving is a privilege, which it is, but lacks to address how that privilege varies widely across markets & communities.
@@3dandelion Exactly my point, we should just give less licenses, the average American driver will not pass the test in Europe, Latin America, or most of the ROW. There is a reason why autonomous driving vs insurance is being brought up so you understand the connection now, almost no skillful driver is begging to pay for, or even asking for autonomous driving.
@@navsofour2892 I don’t see that happening because
1. America doesn’t have an expanded high speed rail system like Europe or Asia, yet.
Unless you live in a city, It’s too large of a landmass to justify a significant portion of the population not driving. Buses are already notoriously bad at cross country trips.
2. The industries involved in insuring people/vehicle purchases/oil & gas aren’t going to just let their customer base be reduced like that.
3. There are socio-economic factors that affect some communities in the US that would make driving a “wealthy privilege” if such stringent restrictions were put in place. (Unless it was subsidized by the government.) Rural communities. Places like West Virginia, Midwest towns in the middle of nowhere.
Person A could pass in 1 try & Person B could take 20 tries. If the new tests cost for ex. $20 it would cost Person B $400 to get a license on top of all the other costs of becoming a driver. Some people don’t have that disposable income.
It would also bring up the fight between federal & state jurisdictions because some states actually do exactly what you’re describing but others just want you to go to drivers ed then apply.
Doesn’t really matter, autonomous vehicles should be able to bridge the gap between these things.
I think at first lower accident rate will allow insurance companies to make more money. They pay out less. Allowing higher margins. But, they will be forced to lower their prices to match to accident rate. Each state has a government entity that oversees this business. It makes sure that they are compliant.
I didnt get a damn thing of what he said
Warren basically was addressing how he is of the opinion that it is a net positive for accidents to go down even if it reduces the volume that is taken in by Berkshire Insurance.
Ajit is pointing out that although Tesla’s autonomous driving may come to fruition. The manner in which the average person drives has become more reckless & thus skyrocketing car insurance costs regardless. & That if Tesla achieves a safe autonomous driving model. They will inevitably have to provide some kind of insurance of their own due to the fact that current insurance providers will be reluctant to carry them due to the amount of human error accidents that come as a result of more autonomous vehicles. Which would cost Tesla a lot as well. But as he said Time will Tell.
Think about why so many insurances companies hate Uber & Lyft. Their business model costs them a lot in insurance payouts.
Truth is no matter how much the number of accidents fall, the insurance company will continue to make money since drivers will still be required to buy insurance. Think about it. Even if they have to pay for your damage, they are going to increase your premium anyways. So the game is already rigged to their favor to begin with.
Tesla should be made liable along with the driver, so they can park money aside which insurance companies can then use. It should also create a higher liability as FSD sudden events will mostly not be avoidable by humans. In other words... being killed by a robot should cost the manufacturer much more than the cost of human error, as there is a promise of perfection being made for a profit.
@@navsofour2892 I was referring to insurance coverage in general. It's a rigged game like casino, so house always win.
With regards to your message it depends on the stage of autonomy. As long as it's not level 5, then the driver will still take full responsibility since it's their choice to use the service and accepted the term of taking over when situation arise (it's same as when you leave your kid in day care or public play place, they will ask you to sign a waiver)
However when it becomes level 5, when the system takes full control with zero human input, then responsibility will fall on the Tesla or whoever makes, sells, rents full self driving technology. But I'm this case, instead of drivers paying insurance company, instead Will end up paying a higher fee for the FSD to help the maker cover the unexpected. So in the end the shift will happen as you expected, and overall cost will likely go down, since electric car price will continue to fall and if more FSD is used, there will be fewer human caused accidents which reduce total cost as well. So win-win for the population.
He got fed and government support for his investment 😂😂😂. Anyone can make a fortune 😅
Dinosaurs tryna throw shade