This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
If Elon Musk didn’t have enough on his hands with his space exploration, tunneling and Hyperloop companies — the Tesla CEO is doubling down on the car company’s ambitions to create an Uber and Lyft competitor.
Musk spoke on Tesla’s third quarter earning’s call about Tesla’s self-driving future.
“Tesla will operate its own ride-hailing services and compete directly with Uber and Lyft, obviously.” Musk said, according to CNBC.
The electric vehicle company will use self-driving cars as the basis for its ride-hailing fleet. Right now the company has semi-autonomous technology in some of its cars but none are yet fully self-driving.
Musk said that Tesla owners will be able to “offer their car, add or subtract to the fleet at will.” This indicates that Musk is following up on the promise in Tesla’s 2016 Master Plan, Part Deux where he wrote about its cars being apart of a ride-hailing fleet one-day:
“You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you’re at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or lease cost,” Musk wrote. “In cities where demand exceeds the supply of customer-owned cars, Tesla will operate its own fleet, ensuring you can always hail a ride from us no matter where you are.”
Musk compared the proposed ride-hailing service to Airbnb, saying customers cars would be used when all of the Tesla-owned cars were in use.
“If we find in a particular metro [where] there aren’t enough customers who are willing to add their car to the shared fleet, that’s where we’d supplant with the company-owned fleet,” Musk said in the earnings call. “So that’s why it’s sort of a combination of the Uber-Lyft thing and Airbnb. We would charge something comparable to how you’d say the App Store works, or I don’t know, we’d charge 30% or something in order for somebody to add the car to the fleet. I think that’s a pretty sensible way to go.”
The service, which in the past has been referred to as the Tesla Network, hopes to be launched by the end of next year. Tesloop, which is unaffiliated with Tesla and ferried travelers between a handful of cities in Southern California and Nevada in the electric cars, was shut down in September.
* The story was updated to indicate that Tesloop was not operated by Tesla but by an unaffiliated company.
Featured image by Smith Collection/Gado/Getty Images.
Know before you go.
News and deals straight to your inbox every day.
NEW INCREASED OFFER: 60,000 points! With great travel benefits, 2x points on travel & dining and a 60,000 point sign up bonus worth up to $1,200 in value, the Chase Sapphire Preferred is a great card for those looking to get into the points and miles game. Here are the top 5 reasons it should be in your wallet, or read our definitive review for more details.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- No foreign transaction fees
- 1:1 point transfer to leading airline and hotel loyalty programs
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards