Tesla's AI-trained Full Self-Driving software is a reason people are buying Teslas -- and helping the stock. Now, there is a new way for anyone to test out the system before forking over cash to Elon Musk's EV maker.
Tesla and Turo, essentially the Airbnb of the car rental business, are now offering the first verified Full Self-Driving rental experience. The peer-to-peer sharing network is projecting $3.3 billion in gross booking value and $1.2 billion in revenue this year.
"Most travelers have had limited opportunity to experience driver's assistance technology, but the demand is clear," said Turo CEO Andre Haddad in a statement. "Our own research shows that 55% of Americans are interested in driverless technology for travel, growing to 71% for Gen Z."
Now, interested drivers can rent a Tesla on Turo and try FSD for a few days.
FSD is capable of doing most of the driving most of the time. Tesla reported 1.74 million active users at the end of the third quarter, up 67% year over year. What's more, about 75% of buyers are opting to pay $99 a month for the service.
I am one of Tesla's active FSD users and have reviewed the product several times. It's impressive and has improved to the point where I believe it's at least as good a driver as I am. Now, the car does most of my driving. Tesla tracks FSD usage in the vehicle and on the Tesla app. FSD has done 68% of the driving since I started to pay.
It's hard to overstate FSD's importance to Tesla. Beyond selling more cars, it underpins the company's new robo-taxi service that investors believe will drive a new era of earnings growth.
On Tuesday, Tesla stock rose 4% to $407.46. The S&P 500 rose 0.6% and the Dow Jones Industrial Average finished flat.
AI stocks rallied, pulling Tesla up, too. SpaceX and CoreWeave rose 1.1% and 7.9%, respectively. Investors are obviously more focused on Tesla's AI applications, such as FSD, these days than its vehicles alone.
Tuesday was Tesla's second consecutive big gain. The stock rose 5.2% on Monday after Barclays analyst Dan Levy upgraded it to Buy from Hold. Signs that Tesla's robo-taxi business was about to grow faster were part of his thinking.
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