Tesla Stock Surges as Elon Musk Secures Approval for Driving Software in China
In a surprising turn of events, Tesla CEO Elon Musk’s visit to Beijing over the weekend has sparked a rally in the company’s stock. Musk reportedly met with a senior government official in China and received tentative approval for Tesla’s driving software, known as “Full Self-Driving” (FSD).
The Wall Street Journal, citing anonymous sources, revealed that Chinese officials have given the green light for Tesla to launch its FSD feature in the country. Despite the name, the software still requires human supervision, especially in light of recent concerns about Tesla’s Autopilot system.
Following this news, Tesla’s stock saw a significant surge of almost 15% in afternoon trading, marking its largest one-day jump since February 2020. Despite this boost, shares are still down 22% for the year, as the company has been grappling with production challenges and a decline in net income.
Analyst Dan Ives from Wedbush described the Chinese approval as a “home run” for Tesla, emphasizing the importance of data collection and algorithm training for autonomous technology. If Musk can secure approval to transfer data collected in China abroad, it could accelerate the development of Tesla’s autonomous capabilities on a global scale.
This latest development comes at a crucial time for Tesla as it seeks to regain momentum and drive future growth with new vehicle offerings and autonomous driving technology. The approval in China could open up new opportunities for the company in one of the world’s largest electric vehicle markets.