Lemonade Stock Jumps on Plans to Insure Tesla’s Self-Driving Cars

• Lemonade (LMND) recently hit a new three-year high.
• Shares are up 152% over the past year.
• LMND maintains a 100% “Buy” technical opinion from Barchart.
• Lemonade is up Wednesday on news it will provide insurance for Tesla’s (TSLA) vehicles that have full-self driving enabled. 

Today’s Featured Stock 

Valued at $5.8 billion, Lemonade (LMND) is an insurance startup that brings a digital approach to homeowners and renters insurance, as well as pet insurance, car insurance, and term life insurance. The company’s business model relies heavily on artificial intelligence, allowing it to offer competitive rates and pay out claims instantly. 

What I’m Watching 

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. LMND checks those boxes. Although Lemonade stock is down 6% since the Trend Seeker issued a “Buy” on Jan. 12, the stock is recovering in Wednesday trade and has turned positive for the past 5-day period. 

Barchart Technical Indicators for Lemonade

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Lemonade scored a new three-year high of $88.88 on Jan. 13.

• LMND has a Weighted Alpha of +128.17.
• Lemonade has a 100% “Buy” opinion from Barchart.
• The stock gained 152.61% over the past 52 weeks.
• LMND has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $81.31 with a 50-day moving average of $76.81.
• Lemonade made 3 new highs but is down 0.92% over the past month.
• Relative Strength Index (RSI) is at 54.92.
• There’s a technical support level around $75.93.

Don’t Forget the Fundamentals 

• $5.8 billion market capitalization.
• Analysts expect losses per share to narrow by 17.5% in 2025 and by a further 31.9% in 2026. 

Analyst and Investor Sentiment on Lemonade

• The analysts tracked by Barchart rate Lemonade a “Hold” with price targets ranging between $30 and $98.
• Short interest is high at nearly 20% of the float. 

The Bottom Line on Lemonade

Lemonade has posted impressive gains over the past 52 weeks and is near its new three-year highs. However, the stock is risky here and has clearly demonstrated volatility, as it is off more than 6% since the Trend Seeker issued a “Buy” signal. 

Its relationship with Tesla adds narrative interest, particularly as partnering with Lemonade on insurance for FSD will allow rates to come down for FSD miles by as much as 50%. This is a benefit for Tesla and its drivers, and Lemonade views it as a win in that it anticipates FSD-enabled cars will be involved in fewer accidents. 

But will the juice be worth the squeeze with LMND? Only time will tell. 

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.