Should You Invest in Tesla Stock Now?

Is it too late to buy Tesla stock?

After a rough start to 2024, Tesla (NASDAQ: TSLA) is starting to see some positive movement. In the last five trading sessions alone, TSLA stock has surged by 35%, jumping from $142 to $194 at the latest close.

What caused the surge in TSLA stock?

Investors are responding to reports indicating that Musk's trip led to approval for Tesla to introduce its Full Self-Driving (FSD) software in China and to transfer data overseas. This marks a significant milestone for the American company as it vies with Chinese EV manufacturers in the world's largest automotive market.

The unexpected surge has taken many investors off guard, causing short-sellers to lose more than $5.5 billion on their bets.

Analysts weigh in on the FSD prospect for Tesla

Goldman Sachs analysts noted that historically, Tesla has focused its Full Self-Driving (FSD) research and development efforts on North America. While they acknowledge the potential global applicability of Tesla's engineering work, they emphasize the necessity of local adjustments for the product to succeed elsewhere. They also highlight the complexities Tesla may face regarding government regulations on data access, localization, and AI, which could complicate technology sharing within and outside China.

Conversely, Citi analysts view the tentative approval of FSD in China as a positive development for Tesla, potentially bolstering its competitive position in the world's largest auto market.

While analysts are conflicted about the FSD introduction in China, Tesla stock continues to surge.