shares of tesla Monday was the best day since March 2021, with shares soaring after the electric car maker passed a major milestone in rolling out advanced driver-assistance technology in China.
Tesla’s stock closed 15% higher as investors reacted to news about CEO Elon Musk’s visit to China.
Tesla announced on Sunday that local authorities in China had lifted restrictions on its vehicles after meeting the country’s data security requirements.
The move raised hopes that Tesla’s Fully Self-Driving (FSD) driver-assistance software would soon be available in the country, the biggest market for electric cars.
Tesla’s electric cars are some of the most popular cars in China, but Entry to some government-related facilities has reportedly been prohibited. Due to data security concerns.
Separately, the Biden administration announced earlier this year that it would investigate whether imported vehicles from China pose a national security risk because they may collect sensitive data.
FSD is an upgrade to Tesla’s Autopilot driver assistant. Tesla has offered FSD technology in China for years, but the feature set was limited to operations such as automatic lane changes.
Tesla has not yet manufactured or sold a fully self-driving car. The company sells a “Level 2” driver assistance system, sold under the brand name FSD.
Musk’s company is being sued by the California Department of Transportation in the United States for false advertising using Autopilot and fully autonomous driver assistance systems.
Tesla responded that the DMV had been aware of the use of these brand names for years and chose not to take action. The company believes that California’s law on advertising self-driving systems violates free speech rights.
Overcoming major hurdles in China
Data security concerns are the main obstacle preventing Tesla from fully rolling out its system in China.
Tesla also reportedly signed a deal with Baidu to ensure Musk has access to the Chinese internet giant’s mapping and navigation technology for Tesla’s FSD capabilities.
The agreement will allow Tesla to use Baidu’s mapping services license, a requirement for operating intelligent driving systems on public roads in China, Reuters reported, citing two anonymous sources familiar with the matter. Ta.
CNBC could not independently verify this report. Tesla and Baidu could not be reached for comment.
The license, which can only be obtained by foreign companies in partnership with local Chinese companies, allows Tesla to legally operate FSD on Chinese roads, and its vehicles collect data about traffic, road signs and routes. become able to.
Tesla’s breakthrough in bringing its FSD technology to China represents a significant victory for the company, which faces intense competition in the Chinese market. Local rivals such as Warren Buffett-backed electric car maker BYD, Nio and XPeng have intensified competition with Tesla in recent years.
—CNBC’s Evelyn Cheng contributed to this report.
Clarification: The text of this article has been corrected to clarify that Tesla has passed a milestone in rolling out “Full Self-Driving,” the brand name for its driver-assistance technology, in China.
