Tesla shares show early signs of a potential long-term rise, with China likely playing a key role. On Monday, the stock dipped 1.1% in premarket trading after gaining nearly 10% last week. Investors are watching closely as a major step forward in autonomous driving could be on the horizon. Here’s what a China FSD launch could mean for Tesla and why it matters to the market.
Posts on Elon Musk’s platform X ignite speculation that Tesla will soon deploy its Full Self-Driving technology in China. Tesla has issued no official statement and has not responded to comment requests. Nevertheless, these hints draw strong investor interest.
The business opportunity looms large. China leads as the biggest electric vehicle market and already accounts for over 20% of Tesla’s annual revenue. In the U.S., FSD commands $99 per month. At first quarter’s close, Tesla counted 1.3 million FSD subscribers, up from about 850,000 a year ago. Launching FSD in China would unlock new, steady income in a market where Tesla already excels in manufacturing and sales.
A China launch would signal that Tesla’s AI advances accelerate, which investors crave. Tesla debuted its robotaxi service in Austin, Texas, in June and has since rolled it out to four cities. The company plans to unveil the third generation of its Optimus humanoid robot later this year.
Tesla shares remain approximately 14% below their record high from December. The stock is down 5% so far this year but has climbed 44% over the past twelve months. Last week’s gains were not driven by Wall Street upgrades or new price targets. Instead, the rally was mostly due to excitement about autonomous driving, making news about China FSD the key thing to watch in the coming weeks.
