Tesla stock rises as Musk offers American customers trial of self-driving software – Reuters

Tesla stock rises as Musk offers American customers trial of self-driving software – Reuters

(Reuters) – Shares of Tesla (NASDAQ:) rose about 5% on Tuesday after CEO Elon Musk said the electric car maker would offer U.S. customers a free trial of its driver-assistance technology for a month.

Musk has long touted Full Self-Driving (FSD) technology as a potential cash cow for the company, but has failed to deliver on his promise of a fully autonomous driving experience, amid intense regulatory and legal scrutiny of Tesla’s safety and marketing.

“All U.S. cars capable of running FSD will be activated for a month-long trial this week,” Musk said in a post on social media platform X.

According to two emails, he also directed employees to provide FSD demonstrations to new buyers and owners of serviced vehicles.

Slower-than-expected demand for electric vehicles and growing competition in China are hurting Tesla’s sales and margins, forcing the company to offer incentives and discounts to increase deliveries.

Tesla has cut prices to boost sales and capture greater market share, hoping to sell its high-margin autonomous technology products to a broad customer base in the future.

“(Free trials) could be a step in the right direction for people starting to adopt the technology. Maybe it will encourage drivers to buy a fully autonomous vehicle for $12,000 at some point,” said Ken Mahoney, CEO of Mahoney Asset Management.

The FSD software, which Tesla says does not make its vehicles autonomous and requires active driver supervision, was also offered for a subscription of $199 per month.



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