The collaboration with Tesla that launched the Israeli stock on Wall Street

Stock Lemonade The Israeli one jumps by about 15% after the insurance company announced that it will offer a 50% discount on insurance prices to drivers of Tesla vehicles when the FSD system is active, after information the company collected showed that this system reduces accidents.

Lemonade, which trades at about 7.3 billion dollars, jumped about 40% since the beginning of the year and tripled its value within a year.

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Co-founder of Lemonade, Shay Wininger, explained on X (formerly Twitter) that “a vehicle that can see 360 ​​degrees, that never falls asleep and reacts in fractions of a second, is simply not comparable to humans. In addition to announcing the product today, we are also declaring our commitment to the Tesla community – the safer the FSD software is, the lower our prices will continue to be.”

“Tesla’s autonomous driving It’s twice as safe as humans, so why do Tesla owners still pay so much for insurance?”, says Weininger.

In the last months, Lemonade worked with the Tesla team on the issue. “In a few days we will launch the first version of our next-generation car insurance, built from the ground up for autonomous vehicles and a new generation of smarter and safer EVs. The first version brings full support for FSD, and allows owners to immediately connect to their vehicle through the Lemonade app. Once connected, we price the insurance according to actual use and not according to national averages, which makes the insurance cheaper, better and fairer.”

WIN WIN

Unlike traditional insurance companies, which rely on human agents to handle claims, Lemonade uses AI-based bots to both sell insurance and manage claims.

The bots collect thousands of data points and analyze them, which allows the company to price policies accurately and at a significantly lower cost. In addition, unlike a traditional insurance brokerage, Lemonade provides immediate insurance offers and processes claims quickly, an advantage that attracts customers due to its convenience and affordable price. The plan is successful: according to Zacks forecasts for 2026, a meteoric growth of 54% is expected in the company’s revenues.

The cooperation between the companies represents not only the launch of a new product, but a fundamental change in the way risk is calculated in the modern insurance world. Lemonade’s business model, which is based on artificial intelligence, gives the company an advantage

At the same time, the agreement strengthens Musk’s safety claims regarding the FSD system. A few years ago, Warren Buffett balked at Elon Musk’s idea that Tesla could change the traditional insurance market. Although the “disruption” and the launch of the FSD technology took longer than expected, it seems that the matter will materialize in 2026 and Tesla customers will save up to 50%.

Elon Musk and Tesla claim that the FSD system is much safer than the average human driver. At the same time, Tesla continues to face resistance from regulators and journalists. However, Lemonade’s independent data backs up the FSD’s safety claims more strongly, even better than Tesla itself.