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Elon Musk’s trip to China surprised investors in late April.
And it sent shares of Tesla (NASDAQ: TSLA) soaring 15%.
Why?
Because China is approving Tesla’s Robotaxi test in the country.
Tesla plans to unveil its Robotaxi at an event on August 8.
China the #2 market for Tesla – accounting for 1/3 of the company’s sales.
The launch of Full Self-Driving (FSD) and Robotaxis is critical to Tesla’s long-term success.
That’s why Elon jumped on his $78 million Gulfstream G700 and flew to China in late April
The reason?
To meet with the Chinese Communist Party secretary of Shanghai. And get early approval to test FSD and Robotaxis in China.
Elon got what he wanted.
“China welcomes Tesla to do some robotaxi tests in the country,” according to Chinese officials.
Tesla appears to have partnered with Baidi (NASDAQ: BIDU) for mapping data of China.
The company also met China’s strict privacy and data security tests.
Here’s why this is important …
Fully autonomous EVs are critical to Tesla’s future success.
China is the #2 market for Tesla.
Maintaining a positive relationship with the Chinese government is required – especially at a time when the U.S. is banning TikTok.
It appears that China is more supportive of Tesla’s self-driving plans than the U.S. government.
Ian