A discount they get to set on a subset of miles of their choice may just be a marketing expense for an insurance startup which makes losses and relies on VC capital and needs growth: https://en.wikipedia.org/wiki/Lemonade,_Inc.#2015%E2%80%9320... I was impressed by this until I looked Lemonade up.

No it does not. A 50% discount and the insurance still having industry average profit, or at least being profitable at all, would tell you that. Selling at a loss does not indicate your costs are actually lower. You need to wait until we learn if it is actually at a loss.

We don't know if 50% makes it actually cheaper than other car insurance companies, or the coverage is comparable, or if they have comparable service. Or if they sell your location information to marketers.

Assuming this discount is offered broadly and indefinitely. Otherwise these might just be marketing dollars.

Yeah I'm actually very curious about this, it's the first I've heard.

I'd like to know what data this is based on, and if Tesla is providing any kind of subsidy or guarantee.

There's also a big difference between the value of car damages and, well, death. E.g. what if FSD is much less likely to get into otherwise common fender benders that don't harm you, but more likely to occasionally accidentally drive you straight into a divider, killing you?

A 50% discount when using FSD or just doubling insurance company profits when when not using FSD. The only evidence that actually matters is cost in comparison to other insurance companies. If this product is cheaper for you, then it probably does indicate FSD is better at driving than you (well, than the average driver in your demographic). Maybe this is damning with faint praise.

Oh, you've totally forgotten about selling to third parties and making tons of money off of what you do and where you go.

I'm sure from an underwriting perspective, they could also offer a significant discount for miles driven with LKAS turned on for the same reason they can do it for FSD: you only do it in certain (lower risk) conditions.

Or a price hike if the fleet API tattles on you for negative driving behaviors.

It may not be on the marketing copy but it’s almost certainly present in the contract.

I will sell you a loaf of bread for $10 and a tortilla for $100.

Analysts saying tortilla industry in shambles.