Tesla (NASDAQ:TSLA) has overcome some key regulatory obstacles that had long prevented it from rolling out its self-driving software in China. The clearance for full self-driving (FSD) in China comes just after Tesla CEO Elon Musk’s surprise visit to China on Sunday.
According to a Reuters report, Musk was expected to discuss the rollout of the EV major’s Full Self-Driving (FSD) software and permission to transfer driving data from the software out of China during his visit.
Moreover, Musk’s whirlwind visit to China came after he canceled a planned trip to India, citing “very heavy Tesla obligations.”
Tesla Partners with Baidu
Interestingly, according to Reuters, Tesla has partnered with Baidu (NASDAQ:BIDU) to collect data on China’s roads through Baidu’s mapping license for data collection.
Furthermore, a Chinese auto association confirmed compliance of Tesla’s Model 3 and Y with China’s data security requirements. Data security and compliance have been major hurdles in TSLA’s rollout of FSD in China, but with this approval, it seems the last hurdle has finally been overcome.
Is Tesla a Buy or Sell?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on eight Buys, 19 Holds, and eight Sells. Year-to-date, Tesla has declined by more than 30%, and the average TSLA price target of $177.30 implies an upside potential of 5.4% from current levels.
