Lemonade introduced a new insurance plan offering 50% discounts on miles driven with Tesla’s autopilot engaged, a concept first suggested by CEO Shai Wininger in October 2025. The company is banking on the safety of self-driving cars, but faces risks if they prove otherwise. Lemonade’s stock soared after the announcement.

The insurance plan, which integrates Tesla’s in-car data with Lemonade’s tracking systems, aims to offer more accurate driving data than current methods. Despite initial investor skepticism and a subsequent stock drop, Lemonade’s FSD discount plan became a reality, launching as an Autonomous Car Insurance plan with a 50% lower rate per mile when autopilot is on.

In the long term, Lemonade plans to expand FSD rebates to more states and other self-driving vehicles, starting with Tesla’s advanced FSD technology. While critics warn of safety concerns, Lemonade’s move is seen as a strategic bet on the future of self-driving cars. Investors are bullish on the potential success of this innovative insurance offering.

Read more at Nasdaq: Why Lemonade Stock Jumped 17% Today