Tesla Inc shares have been experiencing volatility on Monday following the announcement of the deployment of full self-driving features in China. This move is expected to significantly impact the company’s stock performance.
Key Points to Consider
- Software Update: A planned software update for Tesla owners in China will enable vehicles to offer driver-assistance capabilities similar to those marketed as full self-driving in the United States.
- Features and Capabilities: The update will allow Tesla owners to use assisted driving features on city streets, including guiding vehicles through intersections, recognizing traffic signals, making turns, changing lanes, and adjusting speeds.
- Importance of Human Supervision: Although the capabilities are marketed as full self-driving (FSD), the system still requires constant human supervision.
Implementation and Availability
- Rollout Timeline: The planned update is expected to be rolled out in the coming days.
- Initial Availability: City street driving features will initially be available on certain models as the company works to expand the offering gradually.
- Pricing: Tesla owners in China will be able to access the full self-driving features for 64,000 yuan ($8,800).
Market Reaction
- Initial Surge: Tesla shares initially traded up to around $346 in early trading Monday.
- Market Adjustment: The stock pulled back with the broader market, down 0.93% at $334.68 at the time of publication Monday.
Additional Insights
The deployment of full self-driving features in China is a significant development for Tesla, and investors are closely watching the company’s progress. As the company continues to expand its offerings and capabilities, it will be interesting to see how the market reacts to these changes.