Welcome to Extreme Investor Network, where we provide expert insights and analysis on the latest trends in the world of investing. Today, we’re taking a closer look at Tesla’s recent rally and what it means for the future of the electric-vehicle maker.
On Monday, Tesla shares surged more than 15% after clearing a key regulatory hurdle for rolling out advanced driver-assistance technology in China. This marked the company’s best day since 2021, but Goldman Sachs analyst Mark Delaney believes that there are still obstacles to overcome before achieving full self-driving technology in the region.
According to Delaney, Tesla will need to make specific improvements to its technology to meet the requirements set by the local government in China. While he has a neutral rating on the stock, Delaney has a $175 price target, implying a 9.8% downside from the stock’s last closing price. He also noted that Tesla will need to navigate government rules on data access, localization, and AI, which could complicate technology sharing within and outside of China.
Despite the challenges ahead, Delaney remains optimistic about Tesla’s ability to develop its driver-assistance technology faster than expected. He emphasized that the pace at which Tesla can update its technology will directly impact its business in China, but cautioned that the technology should not be seen as an “eyes-off/unsupervised product” in its current state.
As investors digest this information, it’s important to keep a close eye on how Tesla navigates these obstacles and adapts its technology to meet the demands of the Chinese market. Stay tuned to Extreme Investor Network for more insights and analysis on the ever-evolving world of investing.
