Tesla’s Full Self Driving Plans Boost Share Value
The value of Tesla shares rose by 6% on Thursday. According to Reuters, the spike was triggered by Tesla’s decision to maintain plans to launch its advanced Full Self-Driving (FSD) driver assistance software in Europe and China.
Tesla’s Europe plan is currently awaiting regulator approval. In July this year, Elon Musk said regulators were likely to approve Tesla’s Full Self-Driving software by the end of this year.
Cybercab Launch
Tesla’s share spike comes just a month to the launch of the company’s robotaxis- cybercab. The robotaxis will be powered by Tesla’s driver assistance software that enables drivers to brake, steer, and accelerate on highways and across cities with human supervision.
On Thursday, Musk said Tesla’s FSD technology could be unveiled in right-hand drive countries next year towards the end of quarter one or early quarter two. This implies right-hand markets in China and Europe, which could mean Hong Kong, the UK, and Macau.
The automaker also announced that its FSD technology and Autopark capability will be available for Cyber Trucks this month. In October, Tesla said it would be adding the reverse, park, and unpark functions to FSD.
To access the FSD software, Tesla owners have to pay to unlock semi-autonomous driver assistance capabilities. US buyers can purchase the software for $8000 or pay a monthly subscription fee of $99 to access the supervised version.
FSD Tests
In April, Chinese authorities tentatively approved the launch of Tesla’s Full Self-Driving technology in the country. In June, the company tested its FSD technology in Shanghai, China with 10 vehicles. These tests paved the way for the EV maker to roll out the technology in China where it faces stiff competition from local EV manufacturers. Tesla has a mega factory in Shanghai.
It’s still not clear where the EV maker currently stands with regulators in the European Union.
Even so, the EU reduced tariffs on Tesla EVs imported from China by more than 50% last month. This move gives Tesla a competitive advantage over rival EV makers and boosts future sales in the region.
Investor Caution
As Tesla works to take self-driving to Europe, Wall Street is acting with caution regarding self-driving technologies due to the tough regulatory environment. However, investors expect that potentially, a Trump administration may fast track the regulatory process within the US.
“This may be easier in China, given that it’s joined forces with the Chinese search giant Baidu to use its navigation system. It looks set to be a longer process for approval in Europe,” Susannah Streeter, an Analyst at Hargreaves Lansdown said.
Previously, Musk’s aggressive deadlines have caused apprehension among analysts and investors, particularly after Tesla missed various targets for FSD and the Cyber Truck.
