Tesla Shares Surge on FSD Plans

By Akash Sriram
(Reuters) – Tesla shares rose over 6% on Thursday after the electric automaker confirmed its plans to launch Full Self-Driving (FSD) software in China and Europe, pending regulatory approval.

This announcement comes approximately a month before the company’s unveiling of its new robotaxi product, “Cybercab,” which leverages technology that aids drivers in accelerating, braking, and steering with human supervision on both highways and city streets.

CEO Elon Musk indicated in July that Tesla (NASDAQ:TSLA) is likely to receive regulatory approval for FSD in both regions by year-end. On Thursday, he noted that FSD might launch in right-hand drive markets by late Q1 or early Q2.

While Wall Street remains cautious about self-driving technologies due to strict regulatory scrutiny, investors are hopeful that a potential Trump administration may speed up the regulatory process in the U.S.

“This may be easier in China, given the partnership with Baidu to utilize its navigation system,” said Hargreaves Lansdown analyst Susannah Streeter.

“The approval process is expected to take longer in Europe.”

In June, Shanghai, home to one of Tesla’s gigafactories, permitted 10 vehicles to test FSD, paving the way for its launch in China, although competition from local automakers remains fierce.

Musk’s history of setting ambitious deadlines has raised doubts among investors and analysts, particularly after failing to meet optimistic targets for FSD, Semi, and Cybertruck.

Additionally, Tesla announced new features this month, including Actually Smart Summon, FSD for the Cybertruck, and version 13 of the software, which will require fewer driver interventions next month.