powerballnumbersforlastnight| Bank of America predicts that Tesla's FSD profits in China may exceed US$2 billion in 2030

Bank of America believesPowerballnumbersforlastnightMusk China behavior Tesla swept away the launch of FSD software in ChinaPowerballnumbersforlastnightThe hurdle, which could boost the company's profitability over the next decade.

Assuming that Chinese drivers of Tesla increasingly use its FSD software, the electric car maker could make profits of more than $2 billion a year by 2030, the bank wrote in a report on Monday.

Once the technology is launched, Tesla can charge Chinese FSD users about $99 a month (based on his pricing in the United States).

BofA said that even if only 1/4 of the 1.6 million Tesla drivers subscribed, that would be equivalent to an annual income of $500m.

"but as the gross profit margin may exceed 70%, the profit may reach 3%," the bank said.Powerballnumbersforlastnight.50 million US dollars. " "this figure is likely to increase significantly over time, and under the same assumption, Tesla's annual profit could reach $2.3 billion by 2030, according to IHS's forecast of Tesla's car sales in China."

Another possibility is that if Tesla feels pressured to deploy FSD technology for free, FSD will not generate any benefits. Increasing competition in China may prompt Tesla to do so. BofA said that does not mean it would not benefit, as allowing more vehicles to use FSD would speed up neural network training for the software.

In any case, FSD is sure to stimulate demand for Tesla models in China, potentially reversing the declining interest seen by the company in this market.

"with increasing competition from domestic manufacturers, FSD will help Tesla catch up with and possibly surpass other electric vehicle products on the market," BofA said. Coupled with the recent price cuts in China, this may stimulate sales growth. "

In addition to the FSD deal in China, Tesla's stock will also benefit from the launch of a robot taxi in August and a possible FSD license deal.

Bank of America maintained Tesla's target price of $220, up nearly 20 per cent from current levels.

BofA maintains Tesla's target price of $220, meaning it is up nearly 20 per cent from its current level.