Why Lemonade Stock Soared by 16% This Week

By Eric Volkman – Mar 20, 2026 at 6:35PM ESTKey PointsThe Morgan Stanley pundit now believes the stock is a buy.He waxed positive about the company's recent collaboration with a monster EV maker.An analyst move on Tuesday sweetened investor sentiment toward next-generation insurance company Lemonade (LMND 0.42%), as did developments in the technology that pundit was bullish about. With that, the stock rose by more than 16% over the course of the week, according to data compiled by S&P Global Market Intelligence. Accelerating momentum The analyst was Bob Huang of ever-influential investment bank Morgan Stanley. He upgraded his recommendation on Lemonade to overweight (read: buy) from equalweight (hold). He also raised his price target to $85 per share, up from $80. Image source: Getty Images. According to reports, Huang's new take centers on Lemonade's integration with electric vehicle (EV) incumbent Tesla's onboard vehicle data (if the car's owner provides permission, of course). The insurer is offering a generous 50% discount on insurance for Tesla drivers who engage the full self-driving (FSD) feature in their vehicles. This positions Lemonade to be something of a first mover in the inevitable explosion of autonomous vehicles, which are already prowling the streets in selected American cities. ExpandNYSE: LMNDLemonadeToday's Change(-0.42%) $-0.27Current Price$64.27Key Data PointsMarket Cap$4.9BDay's Range$63.39 - $65.9052wk Range$24.31 - $99.90Volume87KAvg Vol2.6M Ahead of the pack Huang's accurate assessment of Lemonade's potential in the burgeoning self-driving space was bolstered by a major development. On Thursday, EV maker Rivian and rideshare king Uber announced a large-scale partnership, under which Uber will invest up to $1.25 billion in Rivian, and the two companies will together launch tens of thousands of self-driving R2 robotaxis. After a series of fits and starts, the momentum for self-driving technology is clearly accelerating. We can expect greater autonomy on our roads in the coming years, and Lemonade management is to be commended for positioning the company at the forefront of the segment. This will be an exciting stock to watch for sure.Read NextMar 17, 2026 •By James BrumleyWhy Lemonade Stock Is Up More Than 15% on TuesdayMar 8, 2026 •By Brett SchaferWhy Shares of Lemonade Stock Tanked 40.3% Last MonthMar 7, 2026 •By Leo SunShould You Buy Lemonade (LMND) While It's Below $65?Mar 5, 2026 •By Jack DelaneyLemonade Stock Dropped by 36% in February. Here's What Happened.Mar 4, 2026 •By Matt Frankel, CFPLemonade: Reasons to Buy and Reasons to SellMar 3, 2026 •By Jennifer SaibilCan Lemonade Stock Get to $100?About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedLemonadeNYSE: LMND$64.27(-0.42%)-$0.27TeslaNASDAQ: TSLA$367.63(-3.33%)-$12.67Morgan StanleyNYSE: MS$161.47(+1.84%)+$2.92Uber TechnologiesNYSE: UBER$73.88(-1.95%)-$1.47Rivian AutomotiveNASDAQ: RIVN$14.92(-7.44%)-$1.20*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.