A Focus on FSD Rollout
Tesla CEO Elon Musk made a surprise visit to China on Sunday, meeting with Premier Li Qiang. This visit comes at a crucial time for Tesla, as the company seeks to expand its driver-assistance system, Full Self-Driving (FSD), into new markets.
Musk's meeting with Li focused on deepening Tesla's cooperation with China. The premier emphasized China's openness to foreign companies and highlighted Tesla's success as an example of Sino-U.S. trade cooperation.
The Tesla CEO is also expected to discuss the rollout of FSD with Chinese officials. With local EV players promoting their own advanced driver-assistance systems, Tesla's FSD could give it a significant edge in the Chinese market.
Analysts believe this visit is a "watershed moment" for Tesla and China. The long-term valuation of Tesla hinges on FSD, and making it available in China is a key step. Additionally, obtaining approval to transfer data collected in China abroad would significantly accelerate the training of Tesla's autonomous technology algorithms.
While Tesla faces demand challenges in China, analysts remain optimistic about the company's long-term growth story, with FSD playing a crucial role.