Connect with us

Hi, what are you looking for?

Economy

Elon Musk Just Met With Chinese Regulators. Here’s Why That’s Important.

Tesla (TSLA 0.66%) CEO Elon Musk has perfected the art of making headlines.

Just a few weeks ago, Musk took to social media to tease a big update for this summer regarding the company’s autonomous driving technology. Well, investors didn’t have to wait too long for Musk to drop more breadcrumbs.

More recently, Musk posted on social media that he’d met with a series of regulators in China.

Many investors may not realize that Tesla has a major presence overseas, and China is one of its biggest markets. Looking ahead, his meetings there could unlock a lucrative opportunity for the company’s ambitions around self-driving vehicles.

Why is China important for Tesla?

China is the world’s largest electric vehicle (EV) market and home to a number of leading manufacturers, including BYD, Nio, and Li Auto.

Despite the intense competitive landscape, the chart below illustrates how Tesla has established a meaningful business in China with revenue from that region reaching $21.7 billion last year.

Now, as demand for EVs stalls amid a challenging macroeconomic backdrop, Musk is turning his sights to a new source of growth. The company’s autonomous driving software, dubbed full self-driving (FSD), has collected over 1.3 billion miles of driver data.

This provides Tesla with a huge competitive advantage and is a major selling point as Musk looks to make FSD a worldwide business.

With his recent visit, the CEO met with Premier Li Qiang and his constituents to iron out a plan for the company to roll out FSD in China, according to Reuters.

While details surrounding the visit are still unfolding, Reuters reported that Tesla will be partnering with Chinese tech giant Baidu to make FSD a reality.

As part of their relationship, Tesla will be accessing Baidu’s mapping database — an important component in training FSD models.

While there is still a lot to uncover, investors have reason to be very happy if Tesla can become a leader in autonomous vehicles both domestically and abroad. Such success would cement the company as an undisputed leader in artificial intelligence.

This post appeared first on fool.com

You May Also Like

Investing

Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...

Investing

Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...

Investing

NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...

Investing

The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...




Disclaimer: Oldamericanbroker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.


Copyright © 2024 Oldamericanbroker.com