Tesla Gains Nearly 10% in a Week as China FSD Rollout Hopes Lift AI Bet
Updated
Updated · Barron's · May 11
Tesla Gains Nearly 10% in a Week as China FSD Rollout Hopes Lift AI Bet
15 articles · Updated · Barron's · May 11
Tesla shares climbed almost 10% over the past week, including gains of 2%, 3% and 4% from Wednesday through Friday, as investors bet Full Self-Driving is nearing a China launch.
X posts fueled the move rather than analyst upgrades, pointing to a possible rollout of Tesla’s driver-assistance system in the world’s largest EV market; the company did not comment.
China could add a meaningful software revenue stream: FSD has 1.3 million subscriptions, up from about 850,000 a year earlier, and costs U.S. drivers $99 a month.
The speculation also reinforces Tesla’s AI narrative around FSD, robotaxis and Optimus, even with the stock still about 14% below its nearly $500 record high and down 5% year to date.
With Chinese regulators holding the keys, can Tesla's self-driving software ever become a significant global revenue stream?
Is Tesla's massive AI bet a visionary leap or a gamble that ignores its weakening car business fundamentals?
As Tesla pivots to robots, is it abandoning its car business just as global EV competition intensifies?
Tesla’s $8.8 Billion FSD Gamble: The High-Stakes Race for Autonomous Driving Leadership in China (2024–2026)
Overview
In late April 2024, Tesla's stock surged as investors grew optimistic about the company's progress in bringing Full Self-Driving (FSD) technology to China. This rebound was sparked by Elon Musk's announcement of plans to focus on affordable models and autonomous taxis, highlighting FSD as a key growth driver. The prospect of expanding FSD into the lucrative Chinese market signaled a major revenue opportunity for Tesla. Progress in overcoming regulatory and technical barriers further fueled hopes, making FSD deployment in China a pivotal moment for Tesla's future growth and its position as a leader in autonomous technology.