Elon Musk’s surprise visit to China and meeting with the country’s Prime Minister during the final weekend of April has, by Monday, April 29, helped propel Tesla (NASDAQ: TSLA) stock significantly in the pre-market.
The meeting also spawned reports of a tentative deal that would open the gates for Tesla’s self-driving – FSD – to enter China and helped propel another stock in the pre-market – that of the Chinese technology giant, Baidu (NASDAQ: BIDU).
Indeed, Elon Musk’s electric vehicle (EV) maker will allegedly source maps of China from Baidu, and the big tech firm will also provide Tesla with a lane-navigation system.
Previously, Junheng Li, JL Warren Capital CEO and Head of Research, identified access to accurate maps of China as one of the crucial hurdles to Tesla’s FSD in the country in an X post.
Tesla has been maintaining a working relationship with Baidu since 2020 and has been using its maps for navigation within the People’s Republic.
What is next for Baidu stock?
Though expert targets factoring in the Baidu-Tesla FSD deal are yet to come out, investors have seemingly reacted to the news in an overwhelmingly positive manner. Indeed, in Monday’s pre-market, BIDU saw a sharp 5.26% rise from the latest closing price of $100.52 to $105.81.
The extended trading surge has also put Baidu stock promisingly close its resistance level at $106, meaning that, should it break above the price, it could potentially rocket toward its average price target of $158,41 – or even its highest level of $210, assigned in late February by Fawne Jiang of Benchmark Co.
Given the uncertain nature of the current reports about the Tesla-Baidu deal, an official confirmation of even a loose agreement could help give BIDU stock a decisive push toward predicted highs.
BIDU stock price chart
The news about the mapping deal have, at least temporarily, helped confirm Baidu stock’s recent trend reversal away from the decline it has been experiencing since the start of 2024.
Indeed, while BIDU is down 12.85% year-to-date (YTD) and 7.30% in the last 30 days, the technology giant is 5.50% in the green on the weekly chart.
Additionally, while the latest full trading day, Friday, April 26, saw BIDU shares decline 1.86, Baidu stock price today, after the 5.26% extended session rise, stands at $105.81.
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