Tesla shares rose in early trading on Monday after CEO Elon Musk won approval to roll out “fully self-driving” technology in China after a whirlwind weekend trip to the country. It rose more than 12%.
Top Chinese officials have tentatively given Tesla permission to launch the software after meeting with Musk during a surprise visit to Beijing. Tesla will rely on Chinese technology giant Baidu’s map license for navigation on public roads, a person familiar with the matter said. told the Wall Street Journal.
During his visit, Musk met with Chinese officials, including Premier Li Qiang, who previously helped pave the way for Tesla to set up a production facility in Shanghai. The exact timing of the FSD rollout was not immediately clear.
“It’s an honor to meet Prime Minister Li Qiang,” Musk wrote. “We’ve known each other for years, since the early days of Shanghai.”
Local approval for full self-driving could give Tesla a big boost in China, the world’s largest car market. Electric car companies are struggling with sluggish sales.. Tesla also faces fierce competition from Chinese manufacturers such as BYD.
The EV pioneer’s stock has risen more than 30% in the past five days and was trading at about $190 as of Monday, but is still down more than 20% for the year.
Tesla and Baidu’s deal helped reassure Beijing authorities about data privacy risks, people told the Journal.
The company has been storing all data related to its China operations in Shanghai since 2021 as part of a compliance agreement with local regulators.
Wedbush analyst Dan Ives said the Baidu deal “was clearly key to getting the green light from the Chinese government.”
“This is a critical moment for both Musk and the Chinese government, as Tesla faces massive EV competition in China and weak demand,” Ives said in a note to investors. said. “Tesla’s long-term valuation story hinges on FSD and autonomous driving, but a key missing piece of that puzzle is Tesla making FSD available in China, which is already agreed It’s finish.”
Mr. Musk is also seeking approval to transfer data from his Chinese fleet overseas to help train driving software, a person familiar with the situation told Reuters.
Tesla did not immediately respond to The Post’s request for comment.
Full Self Driving is the latest version of Tesla’s semi-autonomous driver-assistance software, which has received positive feedback from the company’s supporters as well as intense scrutiny from U.S. safety regulators.
Musk reportedly introduced a “strict requirement” last month that all potential Tesla buyers undergo a demonstration of FSD technology, including a test drive, before receiving a vehicle.
Earlier this month, Tesla lowered the price of FSD in the US from $12,000 to $8,000. FSD is also available as a monthly subscription, with the price reduced from $199 to $99.
Tesla says its Autopilot and fully self-driving products are “intended for use by fully alert drivers who always have their hands on the wheel and are ready to take over at any time.”
The National Highway Traffic Safety Administration has conducted a lengthy investigation into the potential role of Tesla’s software in hundreds of vehicle crashes.
Last year, Tesla announced an over-the-air recall that added “additional controls and warnings” to alert drivers when using Autopilot.
