Shares of Tesla rose sharply in U.S. premarket trading on Monday after the electric car maker passes a significant milestone to roll out its full self-driving technology in China.Tesla has offered its FSD technology in China for years, but with a restricted feature set that limits it to operations, such as automated lane changing.
SpaceX owner and Tesla CEO Elon Musk arrives on the red carpet for the Axel Springer Award 2020 on Dec. 1, 2020 in Berlin, Germany.Shares of Tesla rose sharply in U.S. premarket trading on Monday after the electric car maker passes a significant milestone to roll out its full self-driving technology in China.
The company's share price was up 7.59% as of 6:02 a.m. ET, as investors reacted to news surrounding Tesla CEO Elon Musk's visit to China. Tesla on Sunday said that local Chinese authorities removed restrictions on its cars after passing the country's data security requirements. The move raised expectations that Tesla's driver-assistance software Full Self Driving would soon be available in the country, which is the largest market for electric vehicles.Full Self Driving is an upgrade to Tesla's Autopilot driver assistant.
Data security concerns have been a key obstacle preventing Tesla from achieving a full rollout of the system in China.