Tesla (TSLA) is one of the best stocks on the S&P 500 Thursday after the electric vehicle (EV) manufacturer announced it will launch its full self-driving (FSD) driver assistance software in Europe and China next year.
In a post on X, the social media platform formerly known as Twitter, Tesla announced that it would begin offering its FSD technology in Europe and China in the first quarter of 2025, pending regulatory approval.
A timeline for approval in both markets was not provided, but Tesla CEO Elon Musk said he expects the company to receive clearance by the end of 2024, according to CNBC. FSD is an upgrade to Tesla's Autopilot driver assistance system, which is currently available in Europe and China.
Is Tesla's robotaxi coming soon?
The FSD expansion news comes just one month before Tesla's unveiling of its robotaxi at an event on October 10. The event was originally scheduled for August 8, but was delayed because Musk wanted to make "important changes to improve the vehicle."
Anticipation around Tesla's robotaxi is a key driver of Ark Invest's $2,000 price target on the Magnificent 7 stock.
Is Tesla stock a buy, sell or hold?
Tesla has stabilized after a rough start to the year and is up nearly 21% in the last six months. Still, Wall Street remains hesitant to give the all clear.
According to S&P Global Market Intelligence, the average analyst target price for TSLA stock is $204.20, representing a discount of roughly 10% to current levels. Additionally, the consensus recommendation is a Hold.
Financial services firm Truist Securities is one of those with a Hold rating on Tesla stock, along with a $215 price target.
"Tesla's development has been a remarkable success story," said Truist Securities analyst William Stein in an August 13 note. "Overcoming obstacles in traditional, established, automotive & energy industries, Tesla developed innovative technology, built scale, and achieved industry-leading profitability."
However, Stein adds that he believes "the company's best days, in terms of volume production, product innovation, and, especially, artificial intelligence (AI) innovations, are still down the road."
