Lemonade (LMND) Soars to 4-Year High on New Partnership

We recently published 10 Stocks Delivering Double-Digit Gains Effortlessly; 4 Hit Highs. Lemonade Inc. (NYSE:LMND) was one of the best performers on Thursday.

Lemonade extended gains for a second day on Thursday to hit a new four-year high as investors took heart from the upcoming launch of a new auto insurance product designed for autonomous driving vehicles, starting with Tesla.

At intra-day trading, the stock soared to its highest price of $99.88 before trimming gains to end the day just up by 13.13 percent at $96.57 apiece.

Set to be available on the market on January 26, Lemonade Inc. (NYSE:LMND) said that the new product cuts per-mile rates for FSD-engaged driving by approximately 50 percent reflecting what the data shows to be significantly reduced risk during autonomous operation.

Further reductions are expected to be implemented as Tesla releases software updates which are anticipated to make the vehicles even safer overtime.

As part of the agreement, Lemonade Inc. (NYSE:LMND) will be able to have access to vehicle data that was previously unavailable, which will then be transmitted into its usage-based risk prediction models to uniquely distinguish between autonomous and human driving, predict risks based on the software version installed, and precision of sensors, among others.

Lemonade Inc. (NYSE:LMND) supports intermittent use of FSDs, as well as households with a mix of Teslas and standard non-FSD vehicles all under one policy.

While we acknowledge the potential of LMND as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.