Benzinga·2026-01-22 04:17Core Insights - Lemonade Inc. will offer a 50% rate cut for Tesla drivers when the Full Self-Driving (FSD) system is engaged, citing reduced accident rates as the reason for the discount [1][2] - The collaboration between Lemonade and Tesla aims to leverage previously unavailable FSD data to enhance insurance offerings [2] - Tesla CEO Elon Musk praised the partnership, emphasizing that activating self-driving significantly increases safety and reduces insurance costs [3] Group 1: Rate Cuts and Insurance Implications - Lemonade announced a 50% reduction in per-mile rates for driving with FSD engaged, with potential for further decreases in the future [2] - The introduction of FSD-engaged rate cuts may lead to insurance companies becoming more financially predictable, with lower premiums and payouts, as noted by investor Chamath Palihapitiya [4] Group 2: Safety Concerns and Industry Reactions - Despite the positive outlook on FSD, there are ongoing safety concerns regarding Tesla's autonomous systems, with lawsuits alleging fatalities linked to the technology [5] - OpenAI co-founder Sam Altman raised questions about the safety of Tesla's Autopilot, citing over 50 deaths related to crashes involving the system [6] Group 3: Market Response - Following the announcement, Tesla's stock rose by 2.91% to $431.44 at market close and further increased by 0.63% to $434.15 in after-hours trading [7]