Tesla shares are trading higher in pre-market following the launch of Lemonade's 'Autonomous Car Insurance,' a move that slashes rates by ~50% for FSD-engaged miles and was noted by a Morgan Stanley analyst as legitimizing the technology.

  • The new insurance product is expected to incentivize FSD adoption, which is crucial as the company faces shrinking margins and slowing deliveries.
  • Analysts remain cautious ahead of the upcoming Q4 earnings report, projecting EPS of $0.45 (a 38% decrease) and focusing heavily on guidance regarding autonomy.
  • Shares are trading at $437.84 (+0.61%) in pre-market trading, recovering slightly after closing yesterday at $435.20 (-3.09%).