(Yicai) Nov. 19 -- Shares of SAIC Motor plunged after Tesla China denied rumors claiming they are in talks to authorize the Chinese carmaker to use the US electric vehicle giant’s Full Self-Driving technology.

SAIC [SHA: 600104] was trading down 9.2 percent at CNY16.66 (USD2.30) as of 10.35 a.m. in Shanghai today. The stock surged nearly 37 percent since Nov. 11, when the rumors started circulating online.

The rumors about Tesla authorizing SAIC to use its FSD system are false, a representative from Tesla China told Yicai yesterday.

According to recent social media rumors, Tesla plans to allow SAIC to equip its FSD on the Shanghai-based carmaker’s robotaxi fleet. The pair has already conducted two rounds of talks about the matter.

Tesla plans to introduce its FSD system in China in the first quarter of next year, but it is still pending regulatory approval, according to a roadmap released by the company’s artificial intelligence team on X on Sept. 5.

The denial of the rumors does not mean that Tesla will not cooperate with Chinese peers on FSD in the future, analysts believe.

FSD is priced at USD12,000 in the US, with a monthly subscription fee of USD99. As of Sept. 30, FSD had been used for over two billion miles.

Tesla estimates that FSD will be safer than human drivers by the second quarter of next year, Chief Executive Officer Elon Musk said during the third-quarter earnings conference call. “There is no need to wait for robotaxi to experience full autonomy,” Musk added. “We expect to achieve that next year with our existing vehicle line.”

Last month, Tesla unveiled its electric self-driving car Cybercab. Musk said then that the model will achieve an annual production capacity of two million units by 2026. However, US federal regulations prohibit the large-scale deployment of vehicles without steering wheels or pedals.

But Bloomberg reported yesterday that the team of elected US President Donald Trump plans to prioritize the creation of a federal framework for fully autonomous vehicles at the Department of Transportation.

Editor: Futura Costaglione