Benzinga - by Surbhi Jain, .
Tesla Inc.’s (NASDAQ:TSLA) recent achievement in passing a significant milestone for its full self-driving (FSD) technology in China sparked discussions among investors and enthusiasts.
The news, which caused Tesla’s share price to spike more than 15% on Monday, comes as the electric car maker continues to navigate the competitive Chinese market.
Related: Tesla Skyrockets About 10% In Premarket: What’s Fueling The Dramatic Rally?
Strategic Win For Tesla The breakthrough in China raises expectations that Tesla’s FSD technology will soon be available in the country. China is Tesla’s largest market for electric vehicles.
Investors see this move as a strategic win for Tesla. Especially since it comes at a time when it is facing stiff competition from local rivals such as BYD Co Ltd (OTCPK:BYDDF) (OTCPK:BYDDY), Nio Inc – ADR (NYSE:NIO), and Xpeng Inc – ADR (NYSE:XPEV).
However, some investors remain cautious about the impact of this development on Tesla’s stock.
May Not Be The Catalyst To Drive Further Gains, Says Redditor The Redditor known as Puginator posted on r/stocks, sharing his opinion on the news. He highlighted that while Tesla’s stock saw a significant jump, this may not be the catalyst to drive further gains.
Others echoed similar sentiments. Two Redditors pointed out previous announcements by Tesla, such as the unveiling of Tesla 2 and the promise of robotaxis, did not have a significant impact on the stock price.
Despite the skepticism, some believe Tesla’s move to bring its FSD technology to China could have broader implications.
Broader Implications Of Tesla’s FSD Nod Redditor Decent-Photograph391 suggested China’s decision to allow Tesla’s FSD could be a strategic move to smooth over Chinese EVs’ entry into the U.S. market. By allowing Tesla’s FSD, China may be positioning itself favorably in the global EV market, leveraging its ability to make quick decisions and allocate resources effectively.
“I have a different take. China is allowing it to smooth over Chinese EV's entry into the US market.Overall, investors saw Tesla’s progress with its FSD technology in China as a positive development for the company.They figure it's no big loss to allow Tesla's ‘FSD,’ as it won't hurt the Chinese in their domestic market as few people make buying decisions based on driving assistance. BYDs are selling just fine without investing too much into it.”
—Redditor Decent-Photograph391
It remains to be seen how this milestone will truly impact Tesla’s stock and its competitive position in the global EV market.
TSLA Price Action: Tesla stock closed up 15.31% at $194.05 on Monday.
Read Next: Apple And Tesla ‘Only Two Companies Able To Thread The Needle In Terms Of China-US’, Says Top Analyst After Tim Cook And Elon Musk’s Recent China Visits
Photo: Beach Media on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.