You’re here (NASDAQ:TSLA) The stock may have just had its best week since last January, but investors aren’t taking profits today. Shares of the electric vehicle (EV) leader soared Monday following news over the weekend that CEO Elon Musk had taken a surprise – and productive – trip to China.
Tesla shares jumped after it was reported that Musk met with Chinese Premier Li Qiang, and the company received approval to move forward with its project. Full Self-Driving (FSD) software technology in its electric vehicles made in China. The stock was up 12.3% as of 11:05 a.m. ET, bringing gains to more than 30% since the start of last week.
One more step towards autonomous driving
Investors are reacting to reports that Musk’s trip resulted in the company’s approval to deploy its FSD software in China and transfer data overseas. It’s a big step forward for the U.S. company, which competes with Chinese electric vehicle makers in the world’s largest auto market.
Tesla’s current version of FSD still requires 100% driver supervision. However, investors have long been value Tesla shares based on potential that its vehicles will one day be able to operate autonomously. Musk himself said that operating a fleet of robo-taxis was the true value of the company.
It’s worth noting that Tesla’s vehicles weren’t the only ones to receive approval under China’s data security rules. Offerings from other China-based electric vehicle makers have joined Tesla’s Model 3 and Model Y in adhering to China’s data security regulations.
But Tesla’s victory could lie in the way it brings the development of its technology to other countries in which it operates. Today’s stock rally appears to anticipate these potential future developments. Regardless, this is still a step in the right direction for Tesla, and investors are cheering the news.
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Howard Smith holds positions at Tesla. The Motley Fool Ranks and Recommends Tesla. The Mad Motley has a disclosure policy.
Why Tesla Stock Soared Today was originally published by The Motley Fool
