One of the biggest fears many have about getting a Tesla or any EV is battery replacement. This has become mainstream knowledge now that a Tesla owner in Finland has blown up his Model S after being charged $22k for a replacement battery. Many people make the argument that EV batteries will die after 10 years because of battery failure whereas an ICE car, if maintained well, can last almost forever.
However, an argument can be made that the lower running costs of EVs will over time make up for the battery replacement costs. Nevertheless, people have a tendency to fear large and sudden bills. No one likes to open a letter only to receive a $20k+ bill.
What Tesla can do to address this is offer battery failure insurance. EV owners can pay a regular premium and, like all insurance, Tesla pools this money into a fund that invests in diversified stocks and bonds, and then as EV owners need to replacement their batteries, they bring it to Tesla who replaces the battery, and then Tesla takes money from the insurance fund to subsidise the costs of this battery replacement. A reasonable excess can be charged to ensure the EV owners try to get the most out of their battery before replacing it.
The main benefit of this battery replacement insurance is spreading the cost out and providing a clear counterargument against the FUD that battery failure will result in a $20k+ bill sent to you.
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