Tesla has reportedly overcome the hurdle that prevented it from developing advanced driver assistance software in China, which is also reflected in the 15% rise in its stock.

According to reports, Elon Musk’s company has reportedly found the solution to its problem by partnering with China’s Baidu. The reports follow billionaire Musk’s surprise visit to China to meet with the country’s premier, Li Qiang. The Tesla boss’ private jet left Beijing on Monday morning, according to FlightRadar24.

As the BBC reports, the deal with Baidu brings Musk closer to developing self-driving vehicle technology in China, the world’s largest electric car market.

While Tesla’s electric vehicles are among the most popular in China, they have reportedly been banned by some government agencies over data security concerns.

Additionally, earlier this year, the Biden administration announced it would investigate whether cars imported from China pose a risk to US national security because they may collect sensitive data.

Agreement – station

Commenting on Tesla’s deal with Baidu, Wedbush analyst Daniel Ives called it a “landmark deal”. The company may face “huge domestic competition in China combined with softer demand,” he said, but its long-term valuation also depends on approval for fully autonomous driving.

Many analysts consider China’s “green light” necessary for Tesla, as its performance in other markets has begun to weaken. It is even recalled that in the results announced by Tesla last week, its profits for the first three months of the year recorded a drop of more than 50%.