Tesla’s Stock Surges as CEO Elon Musk Receives Approval for Full Self-Driving in China
Tesla’s (TSLA) stock experienced a significant boost, jumping up to 15%, after reports surfaced that CEO Elon Musk had gained approval from Chinese officials to roll out the automaker’s Full Self-Driving (FSD) autonomous software in China. This approval came during Musk’s recent visit to Beijing where discussions took place over the weekend.
The approval includes a partnership with Chinese tech company Baidu, which will provide street-level mapping data to power FSD in China. This collaboration not only aids in regulatory approval but also helps in minimizing data privacy and security risks. While the pricing for FSD in China has not yet been disclosed, in the US, Tesla charges $8,000 upfront for lifetime usage or $99 per month for subscription services.
The addition of FSD in China gives Tesla a competitive advantage over rivals such as NIO, Li Auto, and tech giants like Xiaomi who are entering the auto market. Lack of FSD features in the past have impacted Tesla’s market share in China, which dropped to 6.7% in Q4 of 2023 from 10.5% the year prior.
Securing approval for FSD and establishing a data partnership with Baidu are seen as significant achievements for Tesla, with analyst Dan Ives describing it as a “watershed moment.” The focus on autonomous driving and the potential for a robotaxi future are believed to be long-term drivers for Tesla’s growth.
Furthermore, Tesla’s ability to transfer data from China to its servers in the US will accelerate the training of its autonomous technology algorithms worldwide. The promotion of self-driving by the Chinese government in various regions could also lead to increased usage of FSD by consumers in China.
Overall, these recent developments are viewed as positive for Tesla’s growth and technological advancements in the fiercely competitive Chinese market.
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