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How Lemonade Stock Gained 22% Last Month

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Shares of Lemonade (NYSE: LMND) rose 21.9% in January 2026, according to data from S&P Global Market Intelligence. The highly computerized insurance company launched a very specific car insurance plan last month. Lemonade had signaled this move earlier, but investors still acted as if it were an unexpected announcement.

Lemonade started January on a high note. The stock had been on a rampage for several months. By the end of January 19, it had gained 138.3% in 52 weeks. The earnings reports in August and November showed strong sales and positive earnings surprises, along with improved figures in industry-specific metrics such as loss ratios and gross earned premium. Market momentum from those reports carried Lemonade's stock higher in early January, too. Just before the new insurance plan launch, that was good for a 9.9% gain month-to-date.

On January 21, Lemonade unveiled a new car insurance plan, specifically designed for Tesla (NASDAQ: TSLA) vehicles. The Lemonade Autonomous Car plan charges insurance premiums per mile, like some of Lemonade's existing offerings. Electric vehicles also enjoy lower rates than gas-powered cars, so discounts for Tesla drivers already existed.

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