Tesla's Self-Driving Tech Faces Roadblock In UK: Report
Portfolio Pulse from Anusuya Lahiri
Tesla, Inc (NASDAQ:TSLA) may face a ban on selling its 'full self-driving' technology in the UK as the Department for Transport plans to introduce new laws. These laws will prevent the use of terms like 'self-drive' unless vehicles meet strict standards. The Automated Vehicles Bill, expected by 2024, aims to regulate marketing to avoid misleading consumers. Tesla's 'full self-driving' feature, which requires driver monitoring, is unlikely to meet these criteria. The company has been selling this feature globally, but it's only active in North America. Tesla has been promoting 'Full Self-Driving Capability' since 2016 and charges for it in the UK, despite it not being activated. Tesla is preparing to launch its self-driving systems in the UK and Europe but faces legal challenges. In the US, Tesla's Autopilot and Full Self-Driving systems have been under investigation due to accidents. TSLA shares were up 0.34% in premarket trading.
November 27, 2023 | 2:10 pm
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NEUTRAL IMPACT
Tesla's 'full self-driving' technology could be banned in the UK under new laws, potentially impacting the company's ability to sell this feature in the UK market. Despite this, TSLA shares were slightly up in premarket trading.
The potential ban on Tesla's 'full self-driving' technology in the UK could have a negative impact on the company's future revenue and growth in the UK market. However, the current premarket share price increase suggests that investors may not be heavily weighing this news in the short term, or they may be focusing on other positive aspects of the company. The score is neutral due to the mixed signals: regulatory challenges versus slight premarket stock increase.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80