Share price up 15% as investors react to Elon Musk's surprise trip to Beijing
Tesla saw its shares surge on Monday after announcing that it has met the data security standards required to roll out its driver-assistance technology in China.
The 15% boost marked Tesla’s largest single day share price gain since March 2021, according to a report by CNBC.
CEO Elon Musk flew to Beijing over the weekend to meet with local leaders, including Chinese Premier Li Qiang.
Soon after, Tesla announced that Chinese authorities had lifted previous restrictions imposed on the company’s vehicles, heightening expectations for the widespread availability of its Full Self-Driving (FSD) technology.
Honored to meet with Premier Li Qiang.
— Elon Musk (@elonmusk) April 28, 2024
We have known each other now for many years, since early Shanghai days. pic.twitter.com/JCnv6MbZ6W
Tesla already offers the FSD system in China, although its functionalities have been limited to operational features like automated lane changing.
The company has described FSD as an upgrade to its Autopilot driver assistant, stating that its technology remains within the “Level 2” classification of driver-assistance systems, which does not constitute full autonomous driving.
Despite the popularity of Tesla in China, its electric vehicles have been barred from certain government properties over data security concerns, according to CNBC.
In addition to overcoming regulatory hurdles in the country, Tesla has also struck a deal with Chinese tech giant Baidu.
The agreement would provide Tesla with access to Baidu’s licensed mapping and navigation technologies, Reuters reported, allowing for the operation of intelligent driving systems on public roads in China.
As Tesla makes progress in China, it continues to face legal challenges in the US, including a lawsuit by the California Department of Motor Vehicles accusing the company of false advertising related to its Autopilot and FSD systems.
In response to the suit, Tesla argued that the naming of its products has been known to the DMV for years without prior objections. It said restrictions on advertising autonomous driving capabilities infringe on free speech rights.
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