Tesla's shares surges as China backs Elon Musk's full self-driving initiative

Tesla's CEO Elon Musk's recent visit to Beijing yielded progress towards the rollout of the automaker's advanced driver-assistance package in China, propelling Tesla shares by nearly 18 per cent on Monday.

The surge in share price comes during a challenging year for Tesla, with its shares previously declining by about a third, followed by concerns regarding its growth trajectory.

Despite the recent rally, uncertainties persist regarding Tesla's ability to secure government approvals for data transfer overseas, which is crucial for the development of autonomous vehicles.

Musk's unannounced visit to the Chinese capital aimed at discussing the deployment of Tesla's Full Self-Driving (FSD) software and seeking permissions for data transfer.

During the visit, Tesla received an endorsement from a top Chinese auto association, confirming that Tesla's Model 3 and Model Y vehicles complied with data-security regulations.

This endorsement could pave the way for Tesla vehicles to enter parts of China that were previously inaccessible, as reported by Chinese media outlets citing a statement from Tesla.

Tesla has reportedly reached an agreement with Baidu, a leading Chinese tech company, to utilise its mapping license for data collection on China's public roads.

This collaboration is seen as a crucial step towards the rollout of Tesla's Full Self-Driving technology in China, indicating progress in the company's efforts to expand its autonomous driving capabilities globally.

Musk's high-profile meetings during his Beijing visit included discussions with Chinese Premier Li Qiang, who commended Tesla's advancements in China.

While Tesla has kept specific details confidential, Musk had previously hinted at the imminent availability of Full Self-Driving technology in China.

Despite the optimism surrounding Tesla's advancements, questions linger regarding regulatory approvals and data privacy concerns, which could potentially influence the timeline for the deployment of autonomous driving features in the Chinese market.

(With inputs from Reuters)