Why Cathie Wood’s Ark sees Tesla heading towards transforming a personal car from a “stranded asset” into a “revenue-generating machine” – Tesla Motors (TSLA)

Cathie Bois-LED Ark Invest said on Monday that You’re here Inc (NASDAQ: TSLA) The latest decision to allow carsharing on its mobile app brings its user one step closer to monetizing their electric car and turning it from a “stranded asset” into a “revenue-generating machine.”

What happened: Ark analyst Tasha Keeney said speculation was rife that Tesla was planning a ridesharing network after its recent software update that allows owners to share the vehicle with others through the phone app. .

A Twitter account that monitors the App Store for any new updates on the Tesla app, revealed last week that the new version of the electric vehicle maker’s mobile app has a feature that allows owners to share cars.

The update appears to allow Tesla owners to allow multiple drivers to access their cars through the mobile app, which was previously only possible through the website.

Ark previously noted how Tesla could launch a competitive and profitable limousine service before rolling out a network of self-driving taxis.

“Such a strategy could add a huge amount of training data to its autonomous neural network and lay the foundation for the routing and payment infrastructure needed for a stand-alone VTC service,” Keeney wrote in a note.

The latest update would allow family members, car renters and professional drivers to share virtual keys to their Tesla vehicles, the analyst said, which could ultimately allow a Tesla vehicle to be transformed from a “locked-in asset” into an “income-generating machine.”

See also: Why Cathie Wood’s Ark expects the next major round of electric vehicle adoption to be around $ 25,000

Why is this important: Wood’s fund management firm, which counts Tesla as its largest stake, has previously said it believes the Musk-run company could pose a serious threat to ridesharing companies such as Uber Technologies Inc (NYSE: UBER) and Lyft Inc (NASDAQ: LYFT), once self-driving taxis commercialize.

Musk has already talked about launching a chauffeur-driven carpooling service before rolling out an autonomous driving network.

Tesla’s CEO has been promising fully autonomous electric cars for years. The company launched another update for the Fully autonomous driving (FSD) Beta program focused on vision, object detection and precision of vehicle movements.

FSD’s beta updates are released every two weeks and are led by an army of Tesla owners, or beta testers, who have exclusive access to the automaker’s latest and most robust versions of its program. semi-autonomous driving.

So far, only drivers who score 98, 99 and 100 are part of the exclusive club which is likely to expand to lower scores in the future.

Price action: Tesla shares closed down 0.59% at $ 1,009.01 per share on Monday.

Lance B. Holton