Tesla Stock Rises On Approval For Self-driving System In China; To Partner With Baidu

(RTTNews) - Monday, Tesla, Inc.'s (TSLA) stock saw a significant rise following a noteworthy endorsement of its driver-assist technologies in China. The approval came after CEO Elon Musk made an unexpected trip to Beijing over the weekend.

TSLA is trading on the Nasdaq at $192.64, up 14.47% or $24.35 per share. It has traded between $138.80 and $299.29 in the past 52-week period.

Tesla has agreed to introduce its Full Self-Driving (FSD) software service in China, with the support of local tech giant Baidu's mapping and navigation services. While the financial aspects of the deal have not been disclosed, sources say that China is moving towards approving Tesla's FSD package for use within the country.

The China Association of Automobile Manufacturers has backed Tesla's adherence to data security regulations, which supports Musk's vision for the company. Since 2021, Tesla has been storing all data gathered by its Chinese vehicle fleet in Shanghai to comply with local regulations.

As part of the agreement, Tesla will work with Baidu to integrate mapping and navigation functions into its FSD service, a prerequisite for autonomous driving systems to operate on Chinese roads. This collaboration is expected to position Tesla to compete with local electric vehicle manufacturers offering similar capabilities. It also addresses data security concerns raised by regulators.

Wedbush Securities reports that the partnership between Tesla and China is boosting Tesla's operations and indicating potential changes in the wider technology sector between the U.S. and China. Analysts at Wedbush, led by Daniel Ives, have noted that "This is a key moment for Musk as well as Beijing at a time that Tesla has faced massive domestic EV competition in China along with softer demand."

This development is seen as a significant step forward for Tesla in the competitive Chinese market. With this partnership, Tesla has the opportunity to expand its presence in China and offer innovative autonomous driving capabilities to its customers.