High-tech insurer **Lemonade (NYSE: LMND)** has received an upgrade from **Morgan Stanley** due to its innovative approach to insuring self-driving cars. On October 10, 2023, Morgan Stanley analyst **Bob Huang** raised Lemonade’s price target from **$80.00 to $85.00 per share**, citing the company’s partnership with **Tesla (NASDAQ: TSLA)** as a major factor in addressing the unique challenges of insuring autonomous vehicles. Following this upgrade, Lemonade’s shares increased by **15.5%**.
Lemonade first introduced its autonomous car insurance product in January, offering **approximately a 50% discount** for Tesla owners based on the performance of Tesla’s Full Self-Driving (FSD) technology. This pricing strategy is based on the company’s belief that FSD-equipped vehicles are involved in fewer accidents. By utilizing data from Tesla’s self-driving capabilities, Lemonade positions itself as a frontrunner in a new market segment that is expected to evolve as more companies enter the autonomous vehicle space.
