Tesla (NASDAQ: TSLA) stock surged about 16% in intraday trading Monday after reportedly winning tentative approval to introduce Full Self-Driving (FSD) in China following Elon Musk’s surprise visit on Sunday.
Elon Musk, CEO of Tesla (TSLA), has reportedly gained tentative approval for introducing Full Self-Driving (FSD) technology in China, marking a significant milestone for the electric vehicle (EV) giant. The approval comes following Musk’s surprise visit to China and a meeting with a top government official.
According to The Wall Street Journal report, Beijing has granted preliminary approval for Tesla to launch FSD in China, providing a potential boost for the company amidst weaker demand challenges and growing FSD concerns in the United States.
On Sunday, Musk met with China’s Premier Li Qiang. Li said Tesla’s growth in China is “a successful example of Sino-U.S. economic and trade cooperation”, the Chinese state broadcaster reported Sunday.
Following the Musk-Li meeting, Tesla cleared Beijing’s data security tests. The move has led Chinese local authorities to lift restrictions on Tesla vehicles from certain areas.
Tesla and Baidu Join Forces for FSD Rollout in China
In addition, Tesla has partnered with Baidu (BIDU) to facilitate the deployment of FSD in China, with Baidu providing access to its mapping data and lane-level navigation service for FSD.
During Tesla’s earnings call on April 23, Musk said that the EV giant aims to release FSD “as a supervised autonomy system in any market where we can get regulatory approval,” including China.
Tesla (NASDAQ: TSLA) has not specified a launch date for FSD. However, its official China website has updated the status from “to be launched later” to “coming soon.”
The pricing strategy for FSD in China remains undisclosed, given the increasing prevalence of advanced driver-assistance systems and the emergence of robotaxis. Nevertheless, the FSD approval in China represents a significant milestone for Tesla, potentially bolstering its EV pricing and demand in one of the world’s largest EV markets.
Tesla’s sales in China are encountering challenges due to fierce competition and aggressive pricing. Earlier this month, Tesla announced new price cuts in response to market dynamics.
Chinese competitors have promoted numerous new models, featuring Advanced Driver Assistance Systems (ADAS) at the Beijing Auto Show. Tesla lacking any new electric vehicles to showcase, has opted not to participate.
Tesla (NASDAQ: TSLA) Stock Reaction
TSLA stock surged 15.72% to close at $194.75 on Monday. Its value has risen by 37.10% this week. Trading activity has witnessed 229,730,043 (229.73 million) shares changing hands, well above the average daily volume of 101.09 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
