Tesla stock rises as carmaker unveils full self-driving plans for China and Europe ahead of next month’s Robotaxi reveal

Tesla shares surged 2.5% on Thursday after the company said it was pending approval on its full self-driving tech.

Tesla stock climbed on Thursday after the electric car maker said it was poised to roll out its full self-driving technology in Europe and China a month before it’s set to unveil its highly anticipated Robotaxi.

Shares jumped as much as 5% before midday after Tesla said its FSD software was pending approval from regulators in China and Europe, according to a post the company made on X. The stock pared some gains closer to noon ET, to trade at $227.56, up by 3.6%.

Assuming the technology receives approval, the company said it is on track to release full self-driving in the first quarter of 2025, it added.

That’s a rare piece of good news in what’s been a difficult year for Tesla. Shares of the carmaker plunged as much as 43% in 2024 amid concerns over demand, lower sales, rising competition, and Elon Musk’s myriad legal battles.

However, the stock has erased much of that loss as investors get excited about its Robotaxi reveal. The stock is up almost 30% in three months, and its year-to-date loss has been whittled down to 9%.

“We were not looking for major fireworks this quarter from Tesla and while the margin weakness is weighing on the stock … the next phase of the AI Tesla growth story is around autonomous, Robotaxis, and AI playing out for Musk & Co. in our view and that vision ins on the doorstep,” Wedbush analysts said in a note shortly after Tesla’s second-quarter earnings results over the summer.

Tesla’s full self-driving business could deliver strong results for the company within the next three years, Deepwater Asset Management predicted in a recent note, calling the firm’s autonomous driving projects were a “worthwhile waiting game.”

“Musk said it best when he boiled down the TSLA investment case to a simple question; Do you believe the company will deliver on the promise of autonomy? Our view is that potential is within reach, and by late 2027 we should start to see FSD adoption, and the fleet business begin to build,” Deepwater wrote.

Shareholders, in the meantime, have their eye on Tesla’s Robotaxi Day, with the company set to roll out its automous ride-hailing service on October 10. Investors, though, have aired some doubts about the Robotaxi release after Musk pushed the event from August to October, citing an “important design change” and more time needed to “show off a few other things.”