What's Going On With Tesla Shares Tuesday?

Zinger Key Points
  • Elon Musk proposes FSD taxi testing in China, potentially backed by government, amid collaboration speculation with Baidu.
  • Tesla faces production halt in Grünheide amid protests, prompting work-from-home directive for employees.

Tesla, Inc. TSLA shares are trading lower on Tuesday.

During his recent visit to China, Elon Musk, CEO of Tesla, reportedly suggested testing the full self-driving (FSD) capabilities of its vehicles by deploying them as “taxis.” 

The Chinese government might have provided partial support for this proposal, China Daily reported, citing its sources.

Apart from seeking approval for its advanced FSD software rollout in China, Musk also proposed integrating these functions into the country’s taxi services, according to sources familiar with the matter, as added by China Daily.

According to Benzinga Pro, TSLA stock has gained over 4% in the past year. 

Industry experts noted that despite increasing protectionism, exemplified by TikTok’s ban in the U.S., China has signaled its willingness to further open its doors to multinational companies. 

This move aims to allow these companies to test their advanced technologies in the country for mutual benefit.

Chinese internet company Baidu, Inc. BIDU held a press conference on April 20, announcing collaborations with various companies, including Tesla, for the launch of its advanced lane-level navigation system, China Daily stated.

Several media reports suggested that Tesla had struck a deal with Baidu to overcome a regulatory obstacle for its autonomous driving services. However, a source close to Baidu informed China Daily that they had not observed “any new deal related to FSD functions” between the two companies.

The company has also been in the headlines for revealing plans to shut down production in Grünheide for four days. 

Due to ongoing multi-day protests against Tesla’s expansion in Grünheide, the electric vehicle giant has decided to have all employees work from home this Friday, according to Handelsblatt.

Price Action: TSLA shares are trading lower by 3.31% to $178.64 at last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesNewsMarketsMoversMediaGeneralAI GeneratedBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!