Electric vehicle company Tesla (TSLA) is getting ready to roll out a software update that will bring its driver-assistance features, similar to its Full Self-Driving (FSD) capabilities that are available in the U.S., to China later this year. According to Bloomberg, the update will be available on select models to customers who have paid 64,000 yuan–around $8,800–for FSD, with the features expanding to other vehicles later on.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
The update will allow Tesla owners to use advanced driver-assist features on city streets, such as navigating intersections and recognizing traffic signals. This move comes as Tesla faces increasing competition in the Chinese market, particularly from domestic EV giant BYD (BYDDY), which recently launched its own advanced autonomous driving features.
It is worth noting that CEO Elon Musk has been working to get regulatory approval for FSD in China for several years. Indeed, the company has faced challenges in training the system to navigate local roads due to restrictions from both Beijing and Washington. Interestingly, to overcome this, Tesla engineers have been using publicly available videos of Chinese streets to train the system.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 66% rally in its share price over the past year, the average TSLA price target of $351.38 per share implies 6.1% upside potential.
