{"id":1078927,"date":"2024-05-13T10:03:13","date_gmt":"2024-05-13T10:03:13","guid":{"rendered":"http:\/\/8.217.125.72\/?p=1078927"},"modified":"2024-05-13T10:03:16","modified_gmt":"2024-05-13T10:03:16","slug":"tesla-shares-jump-after-reports-of-china-deal-2","status":"publish","type":"post","link":"http:\/\/8.217.125.72\/index.php\/2024\/05\/13\/tesla-shares-jump-after-reports-of-china-deal-2\/","title":{"rendered":"Tesla shares jump after reports of China deal"},"content":{"rendered":"\n
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Tesla\u2019s shares have jumped after reports the firm has cleared an important regulatory hurdle in China by partnering with search giant Baidu.<\/strong><\/p>\n\n\n\n

The reports come after chief executive Elon Musk made a surprise visit<\/strong> to meet the country\u2019s number two leader, Premier Li Qiang.<\/p>\n\n\n\n

The deal with Baidu brings Mr Musk a step closer to rolling out Tesla\u2019s self-driving technology in China.<\/p>\n\n\n\n

Wed-bush analyst Daniel Ives said it was \u201ca watershed moment\u201d. Tesla has been contacted for comment. Baidu declined to comment.<\/p>\n\n\n\n

Mr Ives said the company faces \u201cmassive domestic electric vehicle competition in China along with softer demand\u201d, but that its \u201clong-term valuation story\u201d depends on it also getting approval for fully autonomous driving.<\/p>\n\n\n\n

The agreement with Baidu that is being reported would allow Tesla to go ahead with some autonomous driving technology in China.<\/p>\n\n\n\n

Baidu\u2019s mapping and navigation services would aid Tesla\u2019s self-driving technology, including assisted parking, but full autonomous technology would still require further approval.<\/p>\n\n\n\n

Tesla is one of the world\u2019s largest electric car manufacturers, and China is its second biggest market, but it has yet to launch autonomous driving there as it has in other countries, such as the US.<\/p>\n\n\n\n

Mr Musk strongly believes that autonomous driving is the future.<\/p>\n\n\n\n

\u201cIf somebody doesn\u2019t believe Tesla is going to solve autonomy, I think they should not be an investor,\u201d he has previously said.<\/p>\n\n\n\n

However, even in the US, autonomous cars face challenges and further regulatory hurdles.<\/p>\n\n\n\n

Tesla\u2019s autopilot allows drivers to hand control to the vehicle\u2019s AI, but it still needs constant human oversight.<\/p>\n\n\n\n

Despite this precaution, misuse of the technology has been fatal.<\/p>\n\n\n\n

Last Friday, the US auto regulator opened a probe<\/strong> into the \u201cadequacy\u201d of a software update Tesla made to try to fix problems with its autopilot feature.<\/p>\n\n\n\n

The agency said \u201cforeseeable driver misuse of the system played an apparent role\u201d in at least 13 Tesla crashes, including at least one death, and many more involving serious injuries.<\/p>\n\n\n\n

In December, a former Tesla employee told the BBC<\/strong> he did not believe the technology powering the firm\u2019s self-driving vehicles was safe enough to be used on public roads.<\/p>\n\n\n\n

\u2018Win-win results\u2019<\/strong><\/p>\n\n\n\n

Tesla\u2019s share price jumped almost 12% as markets opened in the US on Monday and means the stock has recovered some of the value it has lost since the start of the year, with the price down over a quarter since January.<\/p>\n\n\n\n

The Chinese approval \u2014 which hasn\u2019t been officially confirmed by Tesla or Baidu but was reported by AP, Reuters, Bloomberg, the Financial Times, and others \u2014 comes after Mr Musk flew to China on the weekend to meet with senior officials.<\/p>\n\n\n\n

State media quoted Mr Musk as saying Tesla wanted co-operation with the country to \u201cachieve more win-win results\u201d.<\/p>\n\n\n\n

Part of the reason analysts believe the firm needs approval in China is because its financial performance has weakened.<\/p>\n\n\n\n

In its results last Tuesday<\/strong>, it recorded $21.3bn (\u00a317bn) in sales for the first three months of this year.<\/p>\n\n\n\n

This was a drop from the $23.3bn recorded in the first three months of 2023 and lower than analysts\u2019 predictions of just over $22bn.<\/p>\n\n\n\n

It pinned its falling sales on \u201cadditional competitors\u201d and \u201cchanges in government and economic incentives\u201d for electric vehicles.<\/p>\n\n\n\n

US revenue decreased from $11.2bn to $9.76bn, while Chinese sales fared better, falling from $4.89bn to $4.59bn.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tesla\u2019s shares have jumped after reports the firm has cleared an important regulatory hurdle in China by partnering with search giant Baidu. The reports come after chief executive Elon Musk made a surprise visit to meet the country\u2019s number two leader, Premier Li Qiang. The deal with Baidu brings Mr Musk a step closer to rolling out […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/posts\/1078927"}],"collection":[{"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/comments?post=1078927"}],"version-history":[{"count":1,"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/posts\/1078927\/revisions"}],"predecessor-version":[{"id":1078929,"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/posts\/1078927\/revisions\/1078929"}],"wp:attachment":[{"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/media?parent=1078927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/categories?post=1078927"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/8.217.125.72\/index.php\/wp-json\/wp\/v2\/tags?post=1078927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}