From Seeking Alpha: 2024-04-29 07:12:47

Tesla (TSLA) stock soared 9.16% in premarket trading, reaching its highest level since March 1 after Elon Musk’s visit to China and reports of a potential partnership with Baidu (BIDU) on mapping data collection. Wedbush Securities analyst Dan Ives predicts Tesla’s Full Self-Driving (FSD) approval in China could be a game-changer.

Ives highlights the importance of FSD approval in China for Tesla’s long-term valuation and autonomous technology development. He notes that Tesla has stored all data collected by its Chinese fleet in Shanghai since 2021, meeting regulatory requirements. The next step would be approval to transfer this data abroad, potentially accelerating global training of Tesla’s autonomous algorithms.

Chinese EV maker Nio (NIO) saw a 4.23% increase in premarket trading, with Li Auto (LI) gaining 4.43% and XPeng (XPEV) up 1.69%. BYD Company (OTCPK:BYDDF) also experienced gains. The Chinese EV sector appears optimistic about collaboration between the U.S. and China following Tesla’s recent developments in the region.



Read more at Seeking Alpha: Tesla’s ‘watershed’ moment in China helps lift Chinese electric vehicle stocks