(MENAFN) Tesla's stock experienced a significant surge in value following reports of a potential collaboration between CEO Elon Musk's company and Chinese tech giant Baidu. The partnership aims to integrate Baidu's mapping and navigation technology to enhance autonomous driving capabilities in the Chinese automotive market, the largest in the world.
In premarket trading in the United States, Tesla shares soared by nearly 14 percent, reflecting investor optimism surrounding the rumored collaboration. Meanwhile, Baidu's stock witnessed a notable increase of over 5.5 percent in Hong Kong trading, signaling market enthusiasm for the potential partnership.
According to Reuters, sources familiar with the matter revealed that Baidu, known as China's primary internet search company, has agreed to grant Tesla access to its mapping license for data collection on public roads in China. This strategic move is seen as a crucial step in facilitating the rollout of Tesla's Full Self Driving (FSD) technology, the latest iteration of its Autopilot system.
Elon Musk's recent visit to China, where he engaged in discussions with Prime Minister Li Qiang, further fueled speculation about Tesla's plans in the Chinese market. Reports suggest that Musk sought approval for the FSD software rollout in China and explored the possibility of transferring data overseas during the talks.
Sources cited by the Wall Street Journal revealed that Chinese officials have tentatively approved Tesla's driver-assistance service for deployment in the country. Additionally, Bloomberg reported that Tesla has met requirements regarding data security and privacy, addressing key concerns raised by Chinese authorities.
The rumored collaboration between Tesla and Baidu underscores the growing significance of autonomous driving technology in China's rapidly evolving automotive landscape. As Tesla navigates regulatory processes and seeks to expand its presence in the Chinese market, investor interest in the potential partnership continues to drive optimism and speculation in the financial markets.
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