Analyst: Musk’s visit to China is the key landing moment of Tesla watershed-FSD.
Elon musk, CEO of Tesla, made a surprise visit to China on April 28th, which may be related to Tesla’s upcoming launch of fully automatic driving (FSD) system in China. Wall Street analysts believe that Musk’s visit to China is an important node for Tesla. On the same day, he also met with Li Qiang, Prime Minister of the State Council, China, and expressed Tesla’s desire to deepen cooperation with China and achieve more win-win results.
Faced with the slowdown of electric vehicle sales due to economic uncertainty, Tesla is counting on the high profit potential of FSD software suite. FSD has completed the beta testing phase and is currently being promoted in the United States in a regulated form. Musk revealed earlier in the first quarter earnings conference call that he planned to promote FSD to the global market after obtaining regulatory permission from various countries, with special reference to the China market.
Local enterprises in China, such as Tucki and Huawei, are actively focusing on their advanced driver assistance systems, and Tesla’s introduction of FSD in China will increase its competitive advantage. Wedbush analyst Daniel Ives regards Musk’s behavior as a key step in the landing of Tesla FSD in China, calling it a "turning point". He believes that Tesla’s long-term value lies in FSD and automation technology, and the launch of FSD in China market is a key component of this strategy.
Ives stressed that although Tesla is facing a demand test in the China market, FSD is regarded as the key to the company’s long-term growth. He maintains Tesla’s "outperform" rating and a target price of $275, while the current share price is about $168.29 per share.
In addition, Musk was scheduled to visit India last week to discuss Tesla’s local development plan, which was eventually cancelled due to "busy company affairs".