Elon Musk's China Trip Yields Tesla-Baidu Tie-Up, 11% Stock Surge

Apr 29, 2024, 11:22 AM

Tesla CEO Elon Musk's recent unannounced trip to China has culminated in a strategic partnership with Baidu and the tentative approval for the rollout of Tesla's Full Self-Driving (FSD) technology. During his visit, Musk met with Chinese Premier Li Qiang and other senior officials to discuss the advancement of Tesla's driver-assistance systems and the permission to transfer data overseas. This visit coincides with the Beijing auto show, where competitors are also showcasing their electric vehicles. The discussions are part of Tesla's efforts to boost its presence in China, which is projected to be its largest market next year. Following the meeting, Chinese authorities have removed restrictions on Tesla's cars after they passed data security requirements, significantly raising the likelihood of FSD's availability in China soon. Tesla's stock surged 11% as a result. The meetings also addressed Tesla's revenue decline and highlighted China's commitment to keeping its large-scale market open to foreign companies.