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Tesla's Full Self-Driving Suite Gains Tentative Approval in China

May 13, 2024 Cathrine Z

In a Monday morning note to investors, Morgan Stanley's Adam Jonas highlighted the recent developments surrounding Tesla's Full Self-Driving (FSD) suite in China, signaling Elon Musk's renewed commitment to the electric automaker. The approval of the FSD suite in China, following a meeting between Musk and high-ranking officials, has reassured investors about Musk's dedication to driving Tesla forward.

Jonas emphasized the significance of Musk's commitment to Tesla, particularly in light of his recent acquisition of X, the social media platform formerly known as Twitter. Even the smallest display of commitment carries weight, addressing concerns over Musk's dedication to Tesla compared to his broader ecosystem of companies, according to Jonas.

During Tesla's Q1 Earnings Call, institutional investors raised questions about Musk's level of involvement with the company. Musk responded by affirming that Tesla constitutes the majority of his work time, and he works diligently almost every day of the week to ensure the company's prosperity.

The approval of Tesla's FSD suite in China is seen as a significant victory for the company. Tesla has faced challenges in the Chinese market, and Morgan Stanley views this milestone as a positive development for several reasons. Notably, it is expected to increase data consumption for Tesla, as previously mentioned by Wedbush. Additionally, the approval indicates a potential detente with China in areas such as autonomous driving and FSD, which warrants further research and understanding. Moreover, it addresses concerns about Tesla's profitability in China, allaying fears and building investor confidence.

The news of Tesla's FSD suite gaining tentative approval in China represents a major development for the company, which has not experienced such a significant breakthrough in some time. While the Cybertruck launch was notable, its impact on the stock was limited, leaving investors eagerly anticipating substantial advancements like this.

 

As of 12:20 p.m. on the East Coast, Tesla shares have risen over 17 percent, reflecting the positive market response to this news.

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1 comments

nice
Zoo May 14, 2024

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