Jump to content

Tesla makes headway in China with Baidu deal


Recommended Posts

Iconic US electric carmaker Tesla has boosted its presence in the key Chinese market through a deal with tech firm Baidu.

EVSource: Getty Images
 

Written by: Chris Beauchamp | Chief Market Analyst, London
 
Publication date: 

Tesla and Baidu team up in autonomous driving push

In a major development, electric vehicle pioneer Tesla has forged a strategic partnership with Chinese tech behemoth Baidu to leverage its mapping and navigation technologies in China. This move is a critical step in complying with regulatory requirements for foreign automakers selling smart vehicles in the world's largest auto market.

Elon Musk makes a surprise visit to Beijing

The announcement of the Tesla-Baidu collaboration comes on the heels of Tesla CEO Elon Musk's unexpected visit to Beijing, where he met with China's Premier Li Qiang. This visit took place amidst declining Tesla sales and growing data security concerns in the Chinese market.

By joining forces with Baidu, Tesla has effectively removed a significant hurdle in its quest to roll out and monetise its highly anticipated "full self-driving" advanced driver assistance system in China – the company's second-largest market after the United States.

High-definition mapping key to new initiative

Access to high-definition mapping is an indispensable component for autonomous driving features to function effectively. These systems rely on precise locational data and intricate terrain details to navigate safely and efficiently, making the partnership with Baidu a crucial enabler for Tesla's autonomous ambitions.

While Tesla vehicles have undergone data security compliance assessments by a Chinese industry group, this evaluation does not equate to official approval. Beijing maintains stringent regulations that require user data generated by self-driving technologies to be stored within China's borders.

Revenue boost on the horizon

By successfully deploying its full self-driving system in China, Tesla stands to reap significant benefits. Not only could this move dramatically increase the company's subscription revenues, but it also promises to differentiate Tesla's electric vehicles from an ever-growing pool of local competitors in the dynamic Chinese market.

Tesla stock price – technical analysis

Tesla’s shares were given a fresh boost by the news, building on an already-strong post-results rally.

The price has pushed on through the March highs, and now the next level to watch on the upside becomes the October low at $194, while just beyond this is the February high at $205.

A close above $175.73 today would mark a close above the 50-day simple moving average (SMA). This would be the first time this has happened since early January.

In the short-term, a close back below $175 would be a notable failure of bullish momentum.

Tesla chartSource: IG/ProRealTime

 

 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Bit Starz, a leading online casino known for its extensive selection of slots and table games, is offering an exciting promotion in 2024. By using the promo code “hella”, players can receive a generous 240 free spins, providing ample opportunities to win big on popular slot games. Overview of Bit Starz: Bit Starz is renowned for its wide variety of high-quality casino games, including slots, table games, and live dealer options. The platform is praised for its user-friendly interface, fast withdrawal times, and excellent customer support. Bit Starz accepts multiple currencies, including cryptocurrencies, making it a versatile choice for players worldwide. Promo Code and Bonus: Promo Code: hella Bonus: 240 free spins How to Use the Promo Code: Visit Bit Starz: Open your web browser and go to the Bit Starz website. Sign Up or Log In: If you are a new user, click on the “Sign Up” button to create a new account. You will need to provide your email, create a username, and set a password. If you already have an account, click on the “Log In” button and enter your credentials to access your account. Navigate to the Promotions Section: Once logged in, go to the promotions or bonuses section of your account. Enter the Promo Code: In the promo code field, type “hella” and click on the “Submit” or “Redeem” button. Claim Your Free Spins: After entering the code, you will instantly receive 240 free spins. These spins can be used on selected slot games available on Bit Starz. Benefits of the Promotion: The 240 free spins offer a significant advantage to both new and existing players. Free spins allow players to try out various slot games without risking their own money. This bonus can lead to substantial winnings, enhancing the overall gaming experience. Tips for Maximizing Your Bonus: Explore Different Games: Use your free spins to try different slot games on the platform. This helps in discovering which games you enjoy the most and where you have the best chances of winning. Check Game Contributions: Some games contribute more to wagering requirements than others. Make sure to play games that count significantly towards fulfilling these requirements. Stay Informed: Regularly check the promotions page for additional offers that can further boost your balance or provide extra rewards. By following these steps and using the promo code “hella”, you can maximize your gaming experience on Bit Starz. Enjoy the excitement and potential winnings with this generous 240 free spins bonus in 2024.
    • Unlock $0.15 in free coins on Bandit.camp in 2024 with the promo code “hellagood”. Bandit.camp is a popular gambling platform for CSGO players, offering various betting games and case openings. By using the code “hellagood”, players can start playing without any initial deposit, giving them a chance to explore the platform and potentially win big. How to Claim: Log In or Sign Up: Visit the Bandit.camp website and log in or create a new account. Access Promo Area: Navigate to the promo code section. Enter Code: Use “hellagood” in the designated field. Claim Free Coins: Receive $0.15 in free coins to use on the platform. This promotion is perfect for both new and existing players looking to explore Bandit.camp and enjoy their favorite games with extra funds. Take advantage of this offer to enhance your gaming experience and increase your chances of winning in 2024.
    • Get 30 free coins on CSGOLuck in 2024 by using the promo code “HELLAGOOD”. CSGOLuck is a well-known platform for CSGO betting games and case openings. By using the code “HELLAGOOD”, players can receive 30 free coins to enhance their gaming experience and increase their chances of winning. How to Claim: Sign Up or Log In: Visit the CSGOLuck website and create an account or log in to your existing one. Access Promo Section: Navigate to the promo code area. Input Code: Enter “HELLAGOOD” in the designated field. Claim Free Coins: Receive 30 free coins to use on the platform. This promotion is ideal for both new and existing players looking to maximize their gaming opportunities on CSGOLuck. Take advantage of this exclusive offer to enjoy free coins and enhance your chances of winning big.
×
×
  • Create New...
us