Tesla, Baidu jump as EV maker reportedly wins tentative nod to launch FSD in China

Tesla (NASDAQ:TSLA) has received tentative approval from Beijing to launch its driver assistance software in China, the Wall Street Journal reported on Monday.

According to the report, this development occurred during a surprise visit by CEO Elon Musk to Tesla's largest market outside the US.

Chinese authorities have agreed to allow Tesla to introduce its Full Self Driving solution, leveraging mapping and navigation technology from Baidu (NASDAQ:BIDU), a Chinese tech giant.

TSLA shares jumped more than 6% in premarket trading Monday and BIDU stock rose 5%.

Through this collaboration with Baidu, Tesla not only acquired the necessary technological framework but also addressed key regulatory concerns about data security, easing the path for FSD’s deployment.

Beyond its established search engine operations, Baidu has ventured extensively into autonomous driving and artificial intelligence technologies.

The green light from Beijing follows discussions between Musk and high-ranking Chinese officials, including Premier Li Qiang, a former Communist Party leader in Shanghai where Tesla built its manufacturing base.

Moreover, during his visit, Musk met with Robin Zeng, the chairman of Contemporary Amperex Technology, a key supplier of batteries to Tesla, in Beijing.