Lemonade Inc Cuts Tesla FSD Insurance Rates by 50%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Source: Benzinga
- Significant Rate Reduction: Lemonade has announced a 50% cut in per-mile insurance rates for drivers using Tesla's FSD system, a move that could lead to further reductions in the future, thereby attracting high-value customers and enhancing market competitiveness.
- Accident Rate Decline: Co-founder Shai Wininger noted that data from FSD indicates that Teslas driven with FSD experience far fewer accidents than the industry average, which could enhance financial stability for insurers.
- Strong Stock Performance: Lemonade's stock is currently trading 22.4% above its 20-day simple moving average and 47% above its 100-day moving average, demonstrating strong short-term momentum with a 194.56% increase over the past 12 months.
- Optimistic Analyst Expectations: Investors are looking forward to the earnings report on February 24, with an estimated loss of 40 cents per share (an improvement from a loss of 42 cents year-over-year) and revenue expected to reach $217.51 million (up from $148.80 million year-over-year), indicating strong growth potential for the company.
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Analyst Views on LMND
Wall Street analysts forecast LMND stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMND is 77.60 USD with a low forecast of 40.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 91.280
Low
40.00
Averages
77.60
High
98.00
Current: 91.280
Low
40.00
Averages
77.60
High
98.00
About LMND
Lemonade, Inc. offers renters, homeowners, car, pet, and life insurance. The Company operates through the United States, Europe, including the United Kingdom, providing insurance products to customers through various sales channels. The Company's digital substrate enables it to integrate marketing and onboarding with underwriting and claims processing, collecting, and deploying data. Its technology includes Data Advantage, AI Maya, AI Jim, CX.AI, Forensic Graph, Blender, and Cooper. AI Maya, its onboarding and customer experience bot, uses natural language to guide customers in joining the Company. AI Jim, its claims bot, takes the first notice of loss from its customer without human intervention. It offers pet insurance that covers diagnostics, procedures, medication, accidents or illness. Even its basic pet insurance offering covers blood tests, urinalysis, lab work, and computed tomography scans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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