Analysts at Barclays believe the approval of Tesla's (NASDAQ:TSLA) Full-Self Driving (FSD) in China is an opportunity for the company but it "comes with a host of unknowns."
The bank notes that autonomy is now at the forefront of the Tesla investor narrative and while there will be more to come at the forthcoming Robotaxi day, they see two key updates/developments around FSD.
The first is the recent news of potential approval for FSD in China, which supports a "significant expansion" of the narrative. "Yet we believe it comes with a host of unknowns," adds Barclays.
Secondly, "in the US, where the free FSD trial for users has concluded/or is concluding, and also amid the recent price cuts, we await updates on take rates; yet early reads are weak," they stated.
More broadly, amid Tesla's pivot to autonomous driving and AI, Barclays continues to see uncertainty ahead for the electric vehicle giant.