The stock market reacted favorably Monday morning to the news that Tesla’s cars passed Chinese data security requirements and restrictions were removed by Chinese authorities. It’s believed this will pave the way for the company’s driver-assistance software Full Self Driving (FSD) to become available in China, the largest market for electric vehicles.
The move raised expectations that Tesla’s driver-assistance software Full Self Driving (FSD) would soon be available in the country, which is the largest market for electric vehicles. Although FSD—an upgrade to the Autopilot driver assistant available in Teslas—has been offered for years in China, its features, such as automated lane changing, have been limited. Additionally, the full system rollout has been hindered by data security concerns.
This lifting of restrictions is key for Tesla in a time where rivals, including Warren Buffet-backed BYD, Nio and Xpeng, are increasingly becoming more competitive in recent years. Tesla’s stock prices increased as much as 10% in pre-marketing trading.
