Tesla Secures Permission for FSD Launch in China, Stocks Soar

economy

Submitted2024.04.29 19:28
Edit2024.04.29 19:39

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Photo = REUTERS Tesla CEO Elon Musk decided to solve obstacles to the introduction of a fully autonomous driving system (FSD) and launch FSD in China during an emergency visit to China over the end -week. In addition, China’s key data security and privacy protection requirements have reportedly been addressed.

With this news, Tesla’s (TSLA) stock price is trading at $181, up 7.8% in pre-opening trading on the New York Stock Exchange on the 29th (local time). On the 29th (local time), foreign media such as the Wall Street Journal (WSJ) reported that Chinese authorities have approved Tesla’s (TSLA) plan to launch FSD activities in China in cooperation by Baidu. Baidu shares rose as much as 7% in Hong Kong trading.

Tesla also implemented FSD subscription service in China, but due to data security issues, it could not release full features like Chinese electric vehicle companies.

According to Reuters, Tesla has been collecting data from vehicles sold in China to train its self-driving technology algorithms, but has struggled to use the data due to concerns about distribution to the United States. Starting in 2021, in response to requests from Chinese regulators, the company has been working to obtain official permission to store all data collected from Chinese vehicles only in China and without transferring any data to the United States. This recognition was achieved by being included in the China Automobile Association’s list of 76 car models that have been certified according to China’s data security requirements. Launching a full-featured FSD will make it easier for Tesla to compete with local electric vehicle companies that already provide similar software in China’s automotive market largest electricity in the world.

Many electric car companies, including Xiaopeng and Xiaomi in China, advertise advanced driver assistance systems as a selling point, and they are becoming more common. Tesla has sold more than 1.7 million electric vehicles since entering China 10 years ago.

FSD’s operations in China could provide a buffer to declining EV sales by accelerating diversification into autonomous technologies, artificial intelligence and humanoid robots, a Reuters analysis said. According to figures calculated by Bloomberg based on data from the China Passenger Car Association, Tesla’s market share in China dropped from 10.5% in the first quarter of last year to around 6.7% in the fourth last quarter due to strong competition from domestic EV. manufacturers.

Dan Ives, an analyst at Wedbush Securities, said in an interview with Bloomberg TV that Musk’s surprise visit to China “will be a turning point for Tesla.”

FSD, Tesla’s most autonomous Autopilots, was released in 2020 and includes self-parking, lane change, and navigation. FSD sales in China could help Tesla’s sales rebound, but the company is currently facing a number of safety-related issues in the United States. Musk has long viewed FSD as a potential cash cow, but US auto safety regulators announced last week that they were opening an investigation into the co’s FSD -related to 20 accidents from December in vehicles adopted by FSD that received a software update.

In an earnings call last week, Musk emphasized the importance of autonomous driving development, saying that Tesla should not invest in Tesla, saying that he doubts its ability to solve on autonomous driving.

Guest reporter Kim Jeong-ah [email protected]