Jim Chanos Slams Tesla, Lemonade's Autonomous Insurance, Says True FSD Will Have Manufacturer's Liability: 'You Are All Being Played...'

Investor Jim Chanos, founder of Kynikos Associates, has criticized Lemonade Inc.'s (NYSE:LMND) move to offer reduced rates for Tesla Inc. (NASDAQ:TSLA) vehicles during FSD-engaged driving.

‘You Are All Being Played,' Says Jim Chanos

In a post on the social media platform X on Wednesday, Chanos shared his criticism of the collaboration between the insurer and Tesla. "True FSD will carry manufacturers liability insurance," Chanos shared, which would translate to owners not needing driver insurance.

"You are all being played again by two promotional companies," the investor shared.

Lemonade Offers Reduced Rates For Tesla

Lemonade announced a collaboration with Tesla, which would see the company offer 50% rate cuts on FSD-engaged driving as the data accessed by the company showcased that "Teslas driven with FSD are involved in far fewer accidents," according to Lemonade CEO Shai Wininger.

Benzinga has reached out to Tesla and Lemonade for a comment.

Despite the claims, there are concerns about the safety of Tesla’s autonomous systems, with the automaker facing several lawsuits where plaintiffs allege the system caused fatalities.

Safety regulator NHTSA, too, launched a probe into the system last year following reports of incidents involving Tesla vehicles with autonomous driving engaged, further raising questions regarding its deployments.

According to Benzinga Edge Rankings, Tesla scores well on the Quality and offers a favorable price trend in the Long term.

Price Action: TSLA rose 2.91% to $431.44 at Market close on Wednesday, and further gained 0.63% to $434.15 during the after-hours session.

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