Lemonade’s (LMND) launch of autonomous car insurance tied to Tesla’s (TSLA) full self-driving system marks a meaningful validation of autonomous driving by the insurance industry, with pricing that reflects lower risk for FSD-driven miles and discounts of up to 50%, Morgan Stanley tells investors in a research note. This external endorsement strengthens Tesla’s value proposition, could accelerate FSD adoption, and supports an Equal Weight rating with a $425 price target on the shares, the firm says.
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