The Rice University Neologisms Database

To leave tire tread marks by accelerating a vehicle quickly and depositing rubber on the road by means of friction. ("When I peelout, we’re going to go so fast that we’ll leave tread marks all over the road.") Apparent Meaning: To slam on the accelerator pedal in a car and leave tire tread marks on road. The verb root PEEL refers to the peeling of rubber from tires, which occurs when the wheels of a car move suddenly with immense torque and the tires rub on the road momentarily before rolling forward. The preposition OUT refers to the immediately following forward motion of the vehicle after the peeling of the rubber. Possible Reason Used: The term is used specifically for the unconventional driving habit that involves sudden acceleration. The term provides a quick description of a car’s motion without stating the understood aspects, such as slamming on accelerator, spinning tires, and moving quickly. These elements are implied by the immense force required to rub a visible amount of rubber onto the road when accelerating. The PEELOUT is generally performed by amateur street-racing youth who view the tread marks results from a PEELOUT as a mark of a car’s power. Thus, the term PEELOUT probably evolved as slang term used by young boys in their late teens or early twenties who flaunt the power of their vehicles.