Lemonade jumps after halving premiums for Tesla FSD cars

The digital insurance company’s Lemonade Autonomous Car product appears to validate Elon Musk’s claims for the safety of autonomous vehicles.

The share price of Israeli digital insurance company Lemonade (NYSE :LMND) is up by more than 16% after the company announced that it would offer a 50% discount on insurance to drivers of Tesla vehicles with active FSD (full self-driving) systems), in a product called Lemonade Autonomous Car insurance. In cooperation with Tesla, Lemonade gathered data showing that vehicles using such systems were involved in far fewer accidents than other vehicles.

“Traditional insurers treat a Tesla like any other car, and AI like any other driver. But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human,” said Lemonade co-founder and president Shai Wininger.

“Our existing pay-per-mile product has given us something no traditional insurer has: a unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing. Lemonade Autonomous Car was built on that foundation,” Wininger added.

The new insurance product tends to validate claims made several years ago by Tesla founder Elon Musk about the safety of autonomous vehicles. Warren Buffett expressed reservations about the idea that Tesla would change the traditional car insurance market, but although the disruption and the launch of FSD technology took longer than expected to arrive, it seems that the prediction has come true, and Tesla FSD customers will save 50% on their insurance premiums.

Published by Globes, Israel business news – en.globes.co.il – on January 22, 2026.

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