Written by Akash Sriram
(Reuters) – Tesla Inc (NASDAQ:TSLA) shares rose 2.6 percent before the bell on Thursday after the electric carmaker stuck to its plans to launch its advanced driver assistance software for Full Self-Driving (FSD) in China and Europe pending regulatory approval.
This comes about a month before the company unveils its CyberCab robotic taxi product, which relies on technology that helps drivers accelerate, brake and steer in cities and highways under human supervision.
Tesla CEO Elon Musk said in July that the company would likely get regulatory approval for FSD in both regions by the end of the year. The billionaire said Thursday that FSD could launch in right-hand-drive markets in late Q1 or early April-June.
Wall Street remains cautious about self-driving technology due to tight regulatory oversight. However, investors expect a potential Trump administration to speed up the regulatory process in the United States.
“This may be easier in China, given that it has partnered with Chinese search giant Baidu (NASDAQ:BID) to use its navigation system,” said Susannah Streeter, an analyst at Hargreaves Lansdown.
“It looks like the approval process in Europe will take longer.”
Shanghai, home to one of Tesla’s giant factories, allowed 10 vehicles to undergo FSD testing in June, paving the way for its launch in China, where it faces competition from domestic automakers.
Musk’s penchant for setting aggressive deadlines has raised skepticism among investors and analysts, especially after he failed to meet several optimistic targets for FSD, Semi and Cybertruck.
It also announced other features like Actually Smart Summon, FSD for the Cybertruck electric pickup truck this month, and version 13 of the software that requires less intervention next month.
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