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Calming Investors' Concerns
When Elon Musk announced the prioritization of robotaxis, Tesla's shares initially dropped due to concerns about ongoing low sales. Since the beginning of the year, Tesla's stock has fallen by 26% precisely for this reason. Increased competition and lower demand cooled last year's rally.
Musk's trip to China may have been one of the possible responses to investors' concerns. Thanks to progress in deploying the intelligent assistant, Tesla's shares reversed their declining trend after his return, recording the highest single-day increase since 2021 at 16%.*
Source: Yahoo Finance
What Exactly Happened in China?
The Association of Chinese Automobile Manufacturers declared that Tesla's Model 3 and Y vehicles met all data security requirements in China. Tesla had previously been completely banned from entering certain sensitive areas in China due to concerns about espionage and personal data security. Since 2021, Tesla has been required to store data of Chinese users in data centers within the country, as it faced scrutiny over whether its vehicles could be used for espionage.
Tesla also reached an agreement with the Chinese tech giant Baidu to form a partnership in mapping and navigation functions.
Meeting with Premier Li Qiang
In addition to this announcement, Musk also met with Chinese Premier Li Qiang. Premier Li praised Tesla, which competes with the Chinese firm BYD for the title of the world's largest electric vehicle seller. According to the official record of the meeting with Tesla's CEO, "the economies of China and the United States are closely linked.
Musk praised Tesla's Gigafactory in Shanghai, which Li had supported during his tenure as the party secretary in the city, calling it the company's most successful factory.
Tesla's Autonomous Vehicles
Despite its name, Tesla's electric vehicles are not currently capable of fully autonomous driving. According to the company, it is crucial to transport data from electric vehicles directly to the United States for deeper analysis to develop this software.
Despite the success of potentially launching a new generation of fully autonomous vehicles, it is unclear whether there has been any progress in this matter.
Elon Musk concluded his visit to the country by announcing on his social network X that Tesla may soon launch sales of such vehicles in China.
* Past performance is no guarantee of future results
Sources:
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