Tesla recently received approval for its Full Self-Driving (FSD) technology in China, marking a significant milestone for the company. This approval is considered a major success for Tesla, as its stock has faced challenges throughout the year. Chinese officials confirmed the tentative approval of Tesla’s FSD suite, overcoming regulatory obstacles that had previously prevented its release in the country.
One of the key hurdles involved mapping, which Tesla has addressed by leveraging Baidu’s services. The FSD suite continuously improves as it gathers data from millions of miles driven each day, enhancing its accuracy and intelligence. Analysts note that gaining approval to transfer data collected in China abroad could significantly accelerate the advancement of Tesla’s autonomous technology globally.
The approval in China could also mitigate Tesla’s demand struggles in the country, where its pricing has posed challenges due to competition from other brands. However, the availability of FSD may attract tech-interested car buyers and potentially enhance Tesla’s competitiveness in the market. Despite the challenges, Wedbush maintains an ‘Outperform’ rating and a $275 price target for Tesla’s stock.