U.S. investment banks speak highly of Musk\’s visit to China: a watershed moment for Tesla

Tesla CEO Elon Musk made a surprise visit to China on Sunday. A long-time Tesla bull analyst said the visit may be related to Tesla\’s launch of fully autonomous driving (FSD) software in China.

Special Topic: Musk’s sudden visit to China Tesla CEO Elon Musk unexpectedly visited China on Sunday. An analyst who has been bullish on Tesla for a long time said that the visit may be related to Tesla’s launch of fully autonomous vehicles in China. Driving (FSD) software related.
It is worth noting that Musk was originally scheduled to visit India last Monday and meet with Indian Prime Minister Modi to announce Tesla\’s plans in India.
However, the billionaire canceled the visit at the last hour, citing Tesla\’s troubled affairs.
Daniel Ives, an analyst at Wedbush Securities, said that the focus of Musk’s visit to China is to cut the ribbon for the long-awaited launch of the FSD software and the license/approval to transfer data overseas.
The analyst called the visit a watershed moment for Tesla. He said: Tesla\’s long-term valuation story hinges on FSD and autonomous driving. And a key missing piece of the puzzle is Tesla\’s availability in China FSD. And now that seems just around the corner.
He pointed out that since 2021, the data collected by Tesla’s Chinese fleet has been stored in Shanghai.
Ives said: If Musk can get approval to transfer data collected in China abroad, it will \”change the rules of the game\” and speed up the speed of training algorithms for self-driving technology on a global scale.
He added that this visit is also of great significance for Tesla and Musk to further strengthen their electric vehicle business in the Chinese market at a critical moment.
Ives said: Although Tesla faces demand challenges in China, Wall Street is looking for a long-term growth story for Musk\’s company through this painful transition period, and FSD is a key factor in the secret of success.
Ives maintained his outperform rating and $275 price target on Tesla stock.

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