From Bloomberg: 2024-04-30 08:16:43

Tesla Inc. faces market value loss as analysts question impact of Elon Musk securing approval for driver-assistance features in China. Approval difficult to obtain in China, with Evercore estimating earnings per share increase with Full Self-Driving uptake. Stock down more than 25% for the year despite initial 15% surge.

Approval to deploy Full Self-Driving in China granted to Tesla, stock initially soared but fell more than 5%. Tesla charges $8,000 in the US or $99 monthly for FSD, likely to charge $50 monthly in China. Competing with XPeng, Nio, and Zeekr offerings may limit FSD impact on sales and revenues in China.

Analysts express uncertainty on potential earnings from FSD in China, with outcomes ranging from exceeding $2 billion to zero. Competitive nature of auto industry in China poses risks, as FSD may become a necessary feature rather than a product consumers pay for.TIOverall, impact of FSD deployment in China on earnings remains uncertain.



Read more at Bloomberg: Tesla China Progress Downplayed by Evercore After Stock Soars