On a manual transmission car, power shifting is when you shift gears without using the clutch - waiting for just the right RPM, and then slamming the stick from one gear to the next.
Power shifting is advantageous if done correctly because you change gears without spending any time clutched in - during which time your car normally cannot accelerate.
"Dude that guy can power shift really good, if you race him, you'll get owned."
"... Yeah but I heard he's on this third tranny now."
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