this view from Gordon Johnson, may well suggest that Tesla's 15pc gain overnight on news of FSD approval in China is not really what it seems or understood.
$TSLA's driverless FSD technology HAS NOT BEEN APPROVED IN CHINA (that requires a completely different license which $TSLA did not get). All those saying otherwise (which is nearly everyone) are completely wrong. Why? Well, TSLA will likely…
see NO rev from any of what was approved in China today (i.e., a few driver assist features), inside of China because all of TSLA’s peers offer the same tech, RIGHT NOW, FOR FREE (i.e., Chinese consumers are not going to pay TSLA for something...
. they can get for free from its peers)! What the market is assuming is China approved TSLA’s driverless FSD tech. That is 100% wrong. But, b/c TSLA also calls their driver assist tech “FSD”, it is being reported, INCORRECTLY I MAY ADD, that TSLA’s...
.. driverless FSD tech was approved in China. In reality, what “FSD in China for TSLA today” really means is TSLA is deploying the same kind of driver assistance features all of its competitors ALREADY have in China (i.e., again, features which its peers offer for free).
What it ABSOLUTELY does not mean is TSLA will have actual self-driving services in China (this is NOT what was approved); however, regarding self-driving services in China, there are a number of such services in operation today from...
TSLA’s competitors (showing just how behind TSLA is), but to get that approval is a COMPLETELY different license (again, TSLA did NOT get that approval today). So even the bears who are saying the move in TSLA’s...
stock is over done, but attribute driverless FSD revs from China, are wrong. Why? Well, because it assumes some revenue associated with TSLA’s self-driving services in China in 2024E, which is ABSOLUTELY...
. not what was approved today for TSLA in China. Make sense?
