TMTPost -- Tesla Inc. shares jumped as much as 18.1% and settled 15.3% higher to US$194.05 on Monday, setting their largest daily gains since March 9, 2021. The shares rally, representing a boost of more than $80 billion in market value in one day, came as the U.S. electric vehicle (EV) manufacturer is on the cusp of launch of its Full Self-driving (FSD) system in China.

Credit：Tesla

Musk more than a week ago revealed Tesla may soon launch FSD in China as Tesla cut prices of its models in the United States, China, Germany and other major markets and axed FSD software prices in U.S. and Canada by more than 30%. The chief executive replied to an X post by a user that FSD launch in China “may be possible very soon.”  While China’s state media didn’t confirm Musk has talked about FSD or anything related to the driver-assistance software, signs about Tesla’s rollout of FSD in China increased right after the CEO Elon Musk surprisingly visited China on Sunday. Musk was reported to meet officials in China about rollout of FSD system in China and permission to transfer data overseas.

In his in-person meeting with Musk on Sunday, Chinese Premier Li Qiang hailed Tesla's development in China as a successful example of China-U.S. economic and trade cooperation, and said that China's vast market will always be open to foreign-funded enterprises, which he called indispensible participants in and contributors to China's development. China will act on its words and intensify its efforts in expanding market access and enhancing services, among other areas, to offer a more favorable business environment and stronger support for foreign enterprises, the premier said.

Musk told Li that Tesla willing to deepen cooperation with China to achieve more win-win results, Xinhua reported. Musk pointed out that Gigafactory Shanghai boasts best performance among facilities of his company and praised  the "hardworking and intelligent Chinese team" at Shanghai factory.  Tesla will continue to work hard in China, develop together with the industry peers in areas such as artificial intelligence, EVs and energy storage, and accelerate deployment of clean energy and autonomous driving technologies, so as to turn its beautiful vision into reality, posted the U.S. EV maker on Chinese social media platform Weibo, attaching a screenshot of a CCTV report about Premier Li’s meet with Musk.

Following the meeting, the China Association of Automobile Manufacturers (CAAM) released a list showing that the first batch of 76 vehicle models from seven automakers including Tesla, BYD Auto Co., Ltd., Li Auto Inc., Nio Inc. are compliant with all of four China’s data security requirements,  according to a publication at the website of on Sunday. The top Chinese auto industry body said it had conducted the relevant test since last November under Several Provisions on the Management of Automobile Data Security (Trial) 2021 (2021 Automobile Data Provisions). The list of 76 models includes all the 2023 versions of Model 3 and Model Y made in Tesla’s Gigafactory Shanghai. Tesla then said various local authorities in China have gradually removed restrictions on the movement and parking of intelligent connected connected vehicles made by the company and other automakers.  

Another good news for Tesla came Monday. cleared a hurdle of FSD launch in China, Reuters reported, citing sources, that Baidu, China's major Internet search company, reached an agreement with Tesla to grant the car company access to its mapping license for data collection on China's public roads. The deal was reported to clear a final regulatory hurdle for Tesla's driver assistance system. As part of the deal, Baidu would also provide its lane-level navigation system to Tesla, the sources said.

“It’s hard to tell when FSD will be available in China, ” an insider at Tesla China late Monday responded to Chinese financial news media outlet China Fund News, adding that “we estimate it will be soon.”

Musk’s visit to China sent a signal that he is fully committed to the EV maker, accoording to the longtime Tesla bull Adam Jonas, Morgan Stanley’s head of U.S. auto research. “Elon Musk’s visit to China means far more than seeking approval for self driving tech on Chinese roads. Whether Tesla’s CEO is sleeping on a floor or on a plane... the message is clear: he’s back,” Jonas wrote in a note Monday. Jonas maintained overweight on Tesla stock with a price target of $310.00, implying more than 82% gain from Friday’s close.