TECH - Tesla's Stock Could Rise By Up To $24 If EV Giant's China FSD Rollout Succeeds Says Fund Manager: 'Much Depends On Whether...' | Benzinga
Tesla Inc.’s stock (NASDAQ:TSLA) saw a boost this week on news of a potential full self-driving software rollout in China. Future Fund‘s Gary Black weighed in Tuesday, highlighting the potential benefits for Tesla if the technology reaches this key market.
China FSD: A Big Boost, But Questions Remain
While Black acknowledges the difficulty of quantifying FSD’s value for Tesla, he emphasizes two key factors:
- Sales Model: Will Tesla sell FSD only on its own vehicles, or will it secure licensing deals with Chinese startups?
- Adoption Rate: How many Tesla owners in China will opt for FSD?
“It's difficult to quantify what FSD approval in China is worth to . Much depends on whether TSLA sells FSD on just its own vehicles or secures licensing deals with other China EV makers. Much also depends on China's FSD take rate,” he posted on X.
Black highlighted the significant electric vehicle (BEV) market in China, which sells 22 million vehicles annually, with 24% (roughly 5.2 million) being BEVs. He points out Tesla’s strong presence in China, with 610,000 BEVs sold in 2023 ...