On March 26th, Tesla’s stock (TSLA.O) experienced a notable uptick of around 5% following an announcement from CEO Elon Musk. Musk revealed that the electric car manufacturer would provide U.S. customers with a complimentary trial of its driver-assist technology for a month, a move that sparked investor optimism about the company’s prospects in the burgeoning autonomous vehicle market.

Tesla’s Full Self-Driving (FSD) technology has long been heralded by Musk as a potential revenue driver for the company. However, Tesla has faced challenges in delivering a fully autonomous driving experience amidst regulatory scrutiny and legal challenges regarding the safety and marketing of its self-driving features.

“All U.S. cars that are capable of FSD will be enabled for a one-month trial this week,” Musk announced on the social media platform X, signaling Tesla’s commitment to showcasing its advanced autonomous capabilities to potential customers.

Furthermore, Musk instructed Tesla employees to provide demonstrations of FSD to new buyers and owners of serviced vehicles, emphasizing the company’s proactive approach in promoting its cutting-edge technology.

Tesla’s decision to offer free trials comes at a critical juncture for the company, as it grapples with slower-than-expected demand for electric vehicles and heightened competition, particularly in key markets like China. To stimulate sales and maintain market share, Tesla has implemented price cuts and incentives, aiming to bolster deliveries amid increasing competition.

According to Ken Mahoney, CEO of Mahoney Asset Management, the introduction of free trials could serve as a strategic move to encourage wider adoption of Tesla’s autonomous technology. “This could be a step in the right direction for people beginning to adopt the technology. Maybe this will entice drivers to purchase full self-driving for $12,000 at some point,” Mahoney commented, highlighting the potential long-term benefits for Tesla’s revenue growth.

Tesla’s FSD software, while not rendering its vehicles fully autonomous and requiring active driver supervision, has also been made available through a subscription model priced at $199 per month. This subscription-based offering provides customers with flexibility and accessibility to Tesla’s advanced autonomous features, further expanding the company’s reach within the market.

As Tesla continues to innovate and advance its autonomous driving capabilities, investors remain optimistic about the company’s long-term prospects in the rapidly evolving automotive industry. With the introduction of free trials and subscription-based models for FSD, Tesla is poised to solidify its position as a frontrunner in the development of self-driving technology, driving future growth and profitability for the company.