Wedbush analyst Dan Ives has emphasized the significance of China in Tesla Inc.‘s TSLA growth trajectory. This comes after reports of the company’s plans to test its robotaxis in China.
What Happened: Ives, in an interview with CNBC, referred to China as the “heart and lungs of Tesla growth story.” He highlighted the importance of the Chinese market, especially in light of the company’s robotaxi plans.
Chinese state media disclosed that Tesla would be conducting trials of its robotaxis in China. Although the Chinese government has not given the green light for a full rollout of Tesla’s Full Self-Driving functions, it has reportedly welcomed the company to conduct some robotaxi tests in the country.
CEO “Elon Musk continues to play well in that sandbox in Beijing,” says Ives.
China has been a key focus for Tesla in recent months. In April, the company teamed up with Baidu to introduce its driver assistance features in China. This partnership was aimed at providing high-precision, lane-level mapping and navigation data for China, which is essential for deploying Tesla’s FSD software in the East Asian market.
Why It Matters: Tesla’s focus on China is not new. The company has been making significant strides in the region, with analysts predicting that its revenue and margins will be boosted by its China breakthrough. The company’s success in China is seen as a crucial factor in its global growth strategy.
Moreover, the recent developments in China coincide with a broader executive shake-up at Tesla, with several top officials stepping down. The return of Tom Zhu, long rumored to be Musk’s successor at Tesla, to his role in China also underscores the company’s focus on the region.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
