TLDR
- Tesla is launching a free trial of its Full Self-Driving (FSD) service in China from March 17 to April 16, available to users with compatible hardware and software.
- Tesla stock has lost approximately 39% of its value year-to-date in 2025.
- The company’s automotive revenue declined 6% in 2024, though its energy generation and storage segment grew 67%.
- Tesla is facing challenges from high interest rates affecting vehicle purchases.
- The company has potential growth catalysts including autonomous driving technology, a planned lower-cost electric car, and expanding energy storage business.
Tesla is launching a free trial of its Full Self-Driving (FSD) service in China from March 17 to April 16, the company announced on its Chinese website. This limited-time offer is available to Chinese Tesla owners whose vehicles are equipped with compatible assisted-driving hardware and software, along with the latest navigation maps.
The FSD system is a suite of driving-assistance technologies developed with generative artificial intelligence. It is designed to handle complex traffic conditions that drivers encounter on the road.
Tesla aims for a full rollout of FSD this year. The company is working with Chinese tech giant Baidu to enhance the system’s performance, according to Reuters.
In the United States, Tesla’s FSD system doesn’t require accurate or up-to-date navigation maps. This is because local training of the AI helps the technology drive better.
The situation in China differs significantly. Tesla has been unable to train the system with data from its 2 million electric vehicles in the country. This limitation is due to China’s strict data laws.
Share prices fall 39% year-to-date
Meanwhile, Tesla stock has experienced a sharp decline in 2025. Shares have fallen approximately 39% year-to-date as of mid-March.
This drop comes after a challenging financial performance in 2024. The company’s automotive revenue fell 6% year over year, resulting in total revenue growth of just 1% for the year.
High interest rates have weighed heavily on Tesla’s automotive demand. This environment has put pressure on both sales volume and pricing of its vehicles.
The company’s financial metrics showed further strain. Net income dropped 53% year over year in 2024. Free cash flow declined by 18% during the same period.
Techincal Analysis
According to Trader Edge on X, Tesla is finding support at the key level at $245. This price level has the highest trading volume since August 2020. If it can hold this level as support, price could make a run towards $300.
Impressive growth in energy and storage business
Not all segments of Tesla’s business are struggling, however. The energy generation and storage business saw impressive growth, with revenue rising 67% year over year.
Growth in this segment accelerated even further in the fourth quarter. Revenue increased by 113% compared to the same period in the previous year.
Despite this strong performance, the energy segment remains relatively small. It accounts for about 10% of Tesla’s total revenue, meaning weakness in the automotive division still significantly impacts overall results.
Looking ahead, Tesla has several potential catalysts that could help reinvigorate growth. These include further development of autonomous driving technology, plans for a lower-cost electric vehicle, and continued expansion of its energy storage business.
Tesla’s current stock price stands at $249.98 as of March 14, 2025. This represents an increase of $9.30 or 3.86% for the trading day.
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