Shares of Tesla (TSLA) gained in pre-market trading on Thursday after the EV major reaffirmed its plans to introduce its Full Self-Driving (FSD) software in China and Europe, pending regulatory approval in these regions. The company made this announcement in a post on the social media platform, X.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
This development comes just a month before Tesla’s highly anticipated unveiling of its robotaxi, the “Cybercab.” The Cybercab, is expected to be powered by FSD technology, will assist drivers with accelerating, braking, and steering in both urban and highway environments under human supervision.
Musk Expects Tesla to Get FSD Approval in Europe and China
In July, Tesla’s CEO Elon Musk expressed confidence that Tesla would secure regulatory approval for FSD in China and Europe by the end of this year. On Thursday, Musk added that FSD could launch in right-hand drive markets by late Q1 or early next year.
Why Is TSLA Focusing on FSD Technology?
Tesla is increasingly focusing on innovative products, such as its humanoid robot, robotaxi, and FSD as its EV sales are under pressure. The company’s EV sales are feeling the heat as borrowing costs increase for consumers and they remain concerned about fast-charging infrastructure and driving range.
Furthermore, Full Self-Driving (FSD) has been at the center of Musk’s vision to transform Tesla into a more AI-focused company and advance toward fully autonomous driving technology. However, it is important here to note that FSD does not mean complete vehicle autonomy. Drivers must still remain behind the wheel, stay alert, and be ready to take control if necessary.
FSD represents an upgrade to Tesla’s existing Autopilot driver assistance system, which is already available in Europe and China. In fact, Tesla has offered a limited version of FSD technology in China for several years.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 10 Buys, 14 Holds, and seven Sells. Over the past year, TSLA has declined by more than 10%, and the average TSLA price target of $211.46 implies a downside potential of 3.6% from current levels.
