Tesla Inc. Store in Beijing, China, on Wednesday, May 31, 2023.

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Tesla shares rose sharply in US premarket trading on Monday after the electric carmaker passed a milestone for the launch of its full self-driving technology in China.

The company’s stock price rose 7% by 5 a.m. ET as investors reacted to news surrounding Tesla CEO Elon Musk’s visit to China.

On Sunday, Tesla said local Chinese authorities had lifted restrictions on its cars after passing the country’s data security requirements. The move has raised expectations that Tesla’s Full Self Driving driver assistance software will soon be available in the country, which is the largest market for electric vehicles.

This breaking news is being updated.