The debut of Tesla’s fully driverless vehicle in China might gain approval as early as February, according to Morgan Stanley, which is a step that has the potential to dramatically improve the supply chain for autonomous vehicles in the same country. Monitoring all changes in analyst ratings is possible with InvestingPro, which offers a discount of 55%. According to Tim Hsiao, an analyst, Tesla “commented at the World Economic Forum that its FSD rollout in China could be approved in as early as February.” He also stated that conversations are “in the final stages,” despite the fact that China’s “stringent data scrutiny may cause some holdups.”

It is anticipated by Morgan Stanley that the possible approval will have favorable repercussions for the AD supply chain as well as for the operators of robotaxis, particularly due to the fact that it may speed up the process of acquiring licenses for Level 3 autonomous driving. According to Hsiao, there are four stocks that are chosen by the company. These include Hesai and WeRide, which are considered to be the company’s “preferred stocks in the China AD space.” Additionally, Horizon Robotics and Desay SV are seen to be businesses that “should benefit from faster L2+++ adoption.” In addition, the geopolitical environment appears to be favorable. Hsiao makes the observation that “Sino-US relations have seen a steady improvement,” which establishes conditions that are favorable for a regulatory green light. He notes that “local data-capture and cloud access still call for judicious and skilled handling.”

It is possible that the adoption of FSD will drastically influence the behavior of consumers. The full-function FSD “could turn out to be a blessing for the entire autonomous driving ecosystem,” according to Morgan Stanley, which is analogous to the way in which Tesla vehicles manufactured in China led to an earlier boom in the use of electric vehicles. The financial institution makes note of the fact that China views the technology as “a multi-year AI call option” that has the potential to speed up the complete supply chain for artificial intelligence in the country.