Tesla shares surged yesterday as Elon Musk moved a step closer to launching self-driving cars in China
In a much-needed boost, the electric vehicle maker’s billionaire boss struck a navigation deal with Chinese tech firm Baidu.
He also agreed terms for how the US group handles data security and privacy issues.
The clearing of the two major hurdles came during a surprise visit to Beijing where Musk met Chinese premier Li Qiang to discuss the car industry.
Tesla shares surged more than 15 per cent yesterday.
Driving forward: Tesla boss Elon Musk (pictured) has struck a navigation deal with Chinese tech firm Baidu
The business has been looking to roll out its self-driving cars in China, its second-largest market globally, and convince authorities to transfer data collected in the country abroad to train algorithms.
Musk, 52, said Tesla was willing to cooperate to ‘achieve more win-win results’. The group has previously tried to reassure Chinese authorities by establishing a data centre in Shanghai in 2021.
The share price rally follows a bumpy few weeks for Tesla, which is cutting 10 per cent of its workforce as it battles subdued demand for electric cars.
Musk’s whirlwind visit also came just days after US regulators said a three-year investigation into Tesla’s autopilot mode had identified at least 13 crashes in which the feature had been involved.
Dan Ives, tech analyst at Wedbush, was upbeat about the car maker’s future.
‘While demand challenges exist in China for Tesla, Wall Street is looking through this painful transition period for the long term growth story to emerge for Musk with fully self-driving a key ingredient in that recipe for success,’ he said.
Danni Hewson, head of financial analysis at broker AJ Bell, said: ‘Elon Musk comes in for a lot of stick but the one thing he does appear to do well is those sensitive hand-shaking moments.
‘Its cutting-edge, autonomous tech is likely to be the bit that holds Tesla’s cars above other EVs [electric vehicles] and allows the US company to charge a premium for its models.’
She added: ‘Getting that tech signed off for Chinese drivers is going to be a crucial part of the company’s next difficult chapter and Mr Musk has taken some important strides forward in making that happen.’
