Tesla’s shares surged over 15% after making progress in implementing its advanced driver-assistance technology in China following Tesla CEO Elon Musk’s recent visit to the country, CNBC reports.
The surge followed the announcement that local Chinese authorities had removed restrictions on Tesla’s cars after the company met the country’s stringent data security requirements. The lifting of restrictions raised expectations that Tesla’s Full Self-Driving (FSD) technology would soon be available in China, raising optimism among investors regarding the automaker’s prospects in the world’s largest electric vehicle market.
Additionally, Tesla’s potential collaboration with Baidu, as reported by Reuters, could further bolster its position in China. The reported deal would grant Tesla access to Baidu’s mapping and navigation technology, which is a crucial component for FSD systems to operate effectively on Chinese roads. With this partnership, Tesla would be able to gather data about traffic, road signs, and routes, addressing some of the data security concerns that had previously hindered its progress.
This breakthrough comes at a crucial time for Tesla as it faces increasing competition in the Chinese market. Local rivals such as BYD, Nio, and XPeng have been ramping up their efforts in recent years, posing a challenge to Tesla’s dominance.
