THE STOCK IS STILL DOWN NEARLY 9% SO FAR THIS YEAR. THE BIG STOCK MOVER OF THE DATE IS TESLA. UP 15% TODAY, MORE THAN 15%. MORE THAN 35% IN THE LAST WEEK. THIS LATEST GAME FUELED BY ELON MUSK SURPRISE VISIT TO CHINA AND APPROVAL FOR FULL SELF DRIVING IN THAT REGION. WE HAVE WHAT IT MEANS FOR TASLEY. PLEASE GIVE US A SENSE OF WHAT WE KNOW ABOUT THIS DEAL SO FAR. >> Reporter: LESLIE, THESE ARE THE THREE MAIN TAKEAWAYS SO FAR. FIRST AFTER MASK VISIT WITH THE CHINESE PREMIER OF THE TESLA FLAG, BEIJING DEEMED IT COMPLIANT WITH THE COUNTRY'S NEW SECURITY REGULATIONS. THIS AS A RESULT, THE STATEMENT SAID THAT LOCAL GOVERNMENTS HAD RESTRICTED WHERE TESLA CARS WERE ALLOWED TO GO ARE LIFTING THOSE RESTRICTIONS. SECOND, OFFICIAL MEDIA SAID THAT IT IS REPORTING AND CONFIRMED WITH CHINA AND TESLA BUT IT'S FULL SELF DRIVING SOFTWARE COULD BE LAUNCHED IN CHINA AND WHAT THEY SAID AS, QUOTE, SOON. FINALLY, A SOURCE CLOSE TO THE MATTER TOLD CNBC THAT THE TECH GIANT HERE WOULD PARTNER WITH TESLA ON LAYING LEVEL NAVIGATION AND MAPPING SERVICES. WE ARE STILL WAITING TO SEE WHETHER OR NOT REPORTS THAT MUSK IS LOOKING TO GET APPROVAL FOR THE DATA TO BE TRANSFERRED TO OVERSEAS. WE ARE STILL WAITING TO SEE WHETHER OR NOT THOSE REPORTS BECOME CONFIRMED. >> TODD VERY MUCH. REPORTING TO US FROM BEIJING BUT LET US TURN TO PHIL LeBEAU. HOW IMPORTANT IS FULL SELF DRIVING TO THE FUTURE OF TESLA? NOT MUCH IN CHINA BUT IN THE UNITED STATES AND GLOBALLY. IT IS HUGE, TYLER. THE HOLY GRAIL WITHIN THE AUTO INDUSTRY HAS LONG BEEN MONTHLY SUBSCRIPTIONS. THE REVENUE THAT YOU CAN BRING IN EVERY MONTH. IT IS NOT JUST A ONE-TIME SALE OF THE VEHICLE. IT IS HOW MUCH YOU CAN GET PEOPLE TO PAY YOU MONTH AFTER MONTH FOR A PARTICULAR SERVICE. WILL SELF DRIVING HAS WHOLE POTENTIAL IN THAT AREA BUT WE LOOK AT FULL SELF DRIVING, EVEN PRICES COME DOWN CONSIDERABLY FROM WHERE WAS HE OR TWO AGO, WE ARE LOOKING AT THE U.S. PRICE. YOU CAN BITE IN FULL FOR $8000 OR YOU CAN DO A MONTHLY SUBSCRIPTION OF $99 A MONTH. THE TAKE RATE IS UNCLEAR. THERE HAS BEEN SOME WHO HAVE SAID, I THINK IT IS ABOUT 10% OF THE TESLA CUSTOMERS WHO ACTUALLY BUY WILL SELF DRIVING TECHNOLOGY OR DO THE SUBSCRIPTION. WE HAVE NEVER SEEN ANY DISCLOSURE FROM TESLA. FULL SELF DRIVING HAS BEEN BOUGHT, ACCORDING TO THE COMPANY. THIS WAS IN A REGULATORY FILING EARLIER THIS YEAR BY APPROXIMATELY 400,000 TESLA OWNERS. THAT IS ALL TIME BUT WE DO NOT HAVE A PEOPLE SPOTTED AND SAID, I DON'T WANT IT ANYMORE. THEN THEY SOLD THEIR VEHICLE OR THEY ARE MONTHLY SUBSCRIBERS. THAT GRANULARITY IS NOT CLEAR. WE DO NOT KNOW WHAT TYPE OF REVENUE TESLA GETS FROM ITS FULL SELF DRIVING SOFTWARE. ELON MUSK SAID ON THE CONFERENCE CALL LAST WEEK WHEN THEY HAVE QUARTERLY RESULTS, HE BELIEVES THAT THE GROWTH POTENTIAL WHEN IT COMES FOR FULL SELF DRIVING, IT CAN GROW OVERSEAS. YES, THERE ARE MARKETS IN EUROPE THAT HAVE FULL SELF DRIVING TECHNOLOGY BUT HE BELIEVES IT CAN GROW RAPIDLY IN OTHER MARKETS BUT OF THE SEA, CHINA WOULD BE A HUGE MARKET TO DO THAT. KEEP IN MIND THIS IS SEPARATE, FULL SELF DRIVING IS SEPARATE FROM THE ROBO TAXI DISCUSSION. IT PLAYS A ROLE IN IT, OBVIOUSLY. IF YOU CAN DEVELOP TRULY AUTONOMOUS DRIVING TECHNOLOGY, PLAYING UP A FULL SELF DRIVING TECHNOLOGY, THEN YOU HAVE THE ROBO TAXI AND THEY SAID THEY WILL UNVEIL THAT ON AUGUST 8th. NO OTHER DETAILS AND WHAT THAT MEANS WHEN THEY SAY THEY WILL UNVEIL IT. I CANNOT STRESS THIS ENOUGH. EVEN THOUGH THE NAME IS FULL SELF DRIVING, IT IS NOT AUTONOMOUS. IT IS DRIVER ASSIST TECHNOLOGY. THERE ARE A LOT OF PEOPLE WHO SAY, I NEVER HAVE TO PUT MY HANDS ON THE WHEEL WITH A FULL SELF DRIVING. THAT IS NOT TRUE. IT IS IMPRESSIVE. IT IS IMPRESSIVE BUT IT IS NOT FULLY AUTONOMOUS. >> IT IS IMPRESSES, AS I'VE SET ON THE BROADCAST MANY TIMES. I OWN ONE AND I SIGNED UP FOR THE SUBSCRIPTION BECAUSE I WANTED TO TRY IT OUT. HOW DO PEOPLE WILL TAKE IT UP? I DO NOT KNOW BUT HOW MUCH BETTER IT GETS IS REALLY THE KEY HERE? IT IS GOOD. IT IS IMPRESSIVE AND IT IS NOT PERFECT. PHIL, LET ME LEAVE YOU FOR A MINUTE AND GO BACK TO EUNICE, IF I MIGHT. I BELIEVE AT THE TOP OF YOUR REPORT, YOU SAID ONE OF THE THINGS WAS CLEARED AWAY BETWEEN THIS MEETING BETWEEN MR. MUSK AND THE CHINESE PREMIER. WAS THE IDEA THAT NOW TESLA'S HAVE NO RESTRICTIONS ON WHERE THEY CAN GO IN CHINA? DID I HEAR YOU CORRECTLY AND WHERE COULD THEY NOT GO, IF I DID HEAR YOU CORRECTLY? >> Reporter: THAT WAS AN INTERESTING ADMISSION BY TESLA. THERE HAS BEEN SEVERAL ARTIFICIAL REPORTS THAT TESLA CARS WERE NOT ALLOWED TO GO AROUND CERTAIN SENSITIVE AREAS THAT WERE USUALLY GOVERNMENT RELATED. THAT WAS NOT EXPLICITLY SAID IN THE NOTICE. I THINK IT HIGHLIGHTS SOME OF THE CHALLENGES THAT BOTH THE CHINESE AND THE AMERICANS FACE ABOUT EACH OTHER'S CARS AND CONCERNS ABOUT PRIVACY FOR A LOT OF THAT DATA. >> PHIL MAKES A GOOD POINT THAT THIS IS NOT COMPLETE AUTONOMOUS DRIVING, THIS FULL SELF DRIVE OPTION. YOU HAVE TO STILL KEEP YOUR HANDS IN CONTACT WITH OR PROXIMITY TO THE STEERING WHEEL IN CONGESTED AREAS, LIKE MANY CITIES IN CHINA, WHERE STREET MARKINGS AND LIGHTS AND SIGNAGE MAYBE OR NOT AT WESTERN STANDARDS, THIS COULD BE TROUBLESOME FOR BEES CARS, NO? >> IT COULD BE TROUBLESOME BUT BECAUSE CHINA IS SO FOCUSED ON TRYING TO BECOME A LEADER IN EB AND AUTONOMOUS DRIVING, AND IN A I MORE GENERALLY, THE FEELING IS THAT THEY MIGHT NOT, NECESSARILY, LOOK SO HEAVILY SCRUTINIZED WITH EVERY LITTLE THING THAT TESLA DOES. FROM THE CHINESE PERSPECTIVE, TESLA AND ELON MUSK COULD REALLY HELP THEM REACH THEIR LONGER-TERM GOALS. AND THEIR LONGER-TERM GOALS HAVE BEEN TO BECOME A TECH DOMINANT PLAYER, GLOBALLY, IN A LOT OF THE SAME TECHNOLOGIES THAT HE CURRENTLY IS LEAVING IT. TO THAT POINT, IS THERE A SENSE OF U.S. GUARD RAILS ON THIS TECHNOLOGY? WANTING TO KEEP IT, YOU KNOW, AT LEAST PROPRIETARY FOR A U.S. COMPANY TO HAVE AN MARKET FROM KIM I ONLY ASK BECAUSE THERE HAS BEEN INCIDENCES WHERE OTHER COUNTRIES HAVE SOUGHT TO, MAYBE, RE-ENGINEER THE TECHNOLOGY WITH THEIR OWN KIND OF COMPANIES WITH THOSE REGIONS. IS THERE A SENSE THAT THE U.S. HAS CLUED INTO THIS AND HOPING TO GET THIS TECHNOLOGY SO IT'S PROPRIETARY FOR -- >> YOU CAN BET THAT U.S. IS WATCHING THESE DEVELOPMENTS CLOSELY. WHAT ARE THE DETAILS CAN WHAT ARE THE PARTICULARS OF THIS AGREEMENT WITH CHINA IN TERMS OF ACCESS TO DATA AND WHAT TESLA IS DOING? THAT HAS NOT COME OUT YET. IT IS UNCLEAR AT THIS POINT. LET US NOT FULL ANYONE TO THINK THE U.S. IS NOT WATCHING ANY OF THIS INSANE, IT IS JUST TESLA DOING BUSINESS. THEY ARE WATCHING ALL OF THIS AS THEY ARE WITH ANY COMPANY. WHETHER DOES APPLE OR TESLA. YOU KNOW THEY ARE WATCHING THESE DEVELOPMENTS CLOSELY. >> IN TERMS OF THE STOCK PRICE REACTION, OBVIOUSLY, THIS COMES ON THE HEELS OF THEIR EARNINGS, I BELIEVE IT WAS LAST WEEK. JUST A PROSPECT WITH THESE NEWER TECHNOLOGIES. WE GOT INVESTORS' ATTENTION. HOW DID THEY LOOK AT TODAY'S NEWS OF 15% AND THINK ABOUT HOW THIS WILL ULTIMATELY FILTER INTO THEIR MODELS AND THE REVENUE POTENTIAL AND ALL OF THAT? >> MOST ANALYST NOTES HAVE BEEN POSITIVE. THIS IS AN IMPORTANT MOMENT FOR TESLA IN THE LARGEST EB MARKET. THAT CANNOT BE DISPUTED. YOU HAVE ANALYSTS WHO ARE SAYING, THIS IS FANTASTIC. WE ARE NOT SURE EXACTLY HOW MUCH THIS WILL UNLOCK IN TERMS OF REVENUE POTENTIAL. THIS IS WHAT YOU WANT. IT ALSO IS ANOTHER EXAMPLE, PLAYING OFF OF LAST WEEK ANALYST CALL. YOU HAVE ELON MUSK ACTIVELY ENGAGED IN THE NEXT DEVELOPMENT WITH TESLA. THAT WAS SOME OF THE NARRATIVE AS THE STOCK WAS TRENDING LOWER PEOPLE WERE SAYING, WHERE IS HE? IS HE FULLY ENGAGED WITH THIS COMPANY OR IS HE BUSY DOING A MYRIAD OF OTHER THINGS. NOW YOU'VE HAD TWO INSTANCES, THE ANALYST CALL AS WELLS OVER THE WEEKEND, IT IS VERY CLEAR. HE IS FOCUSED ON THE GROWTH AND DEVELOPMENT OF TESLA. I WOULD NOT CALL IT POSITIVE AS MUCH AS ENCOURAGIN
