Tesla is registering FSD software in China for monthly subscription revenue

From Nasdaq: 2024-05-31 10:11:00

Tesla is preparing to register its Full Self Driving (FSD) software in China, with plans to launch the feature this year. The company may offer the software on a monthly subscription basis to users in China. This move is aimed at generating new revenue sources for Tesla in the competitive Chinese EV market.

Tesla currently offers FSD for a one-time fee in China, but is considering a future monthly subscription model. The company is also exploring licensing opportunities for FSD with other automakers in China. The development of FSD is crucial for Tesla’s ambitions of achieving fully autonomous driving capabilities.

In addition to Tesla, other automakers and suppliers are also offering level-two autonomous driving systems in China. These systems require attentive drivers but are moving closer to fully autonomous vehicles. Companies like Huawei and Xpeng are also developing AI models for autonomous driving, contributing to the advancement of self-driving technology in China’s EV market.

The Zacks Rank for Tesla is currently at #3 (Hold), with other auto stocks like Geely Automobile Holdings Limited, Blue Bird Corporation, and Oshkosh Corporation holding a Zacks Rank #1 (Strong Buy). Positive sales and earnings estimates for these companies indicate growth potential in the auto industry.

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Read more at Nasdaq: Tesla (TSLA) to Register FSD Software With Authorities in China