08:27 AM EDT, 04/29/2024 (MT Newswires) -- (Updates with the latest stock movement in the headline, the first and sixth paragraphs.)

Tesla's (TSLA) shares rose over 13% in recent Monday premarket activity after news outlets reported it reached an agreement with search engine Baidu ( BIDU ) to allow it to deploy its automated driving system in China, citing unnamed sources.

Financial terms weren't disclosed. The deal clears a regulatory hurdle that will allow Tesla to roll out its driver assistance system, called Full Self Driving, in China, the unnamed sources told news outlets.

In China, intelligent driving systems require a mapping license, and foreign firms must partner with one of a dozen domestic companies that have secured one, Reuters said.

As part of the agreement, China's Baidu ( BIDU ) will provide Tesla with its lane-level navigation system, the sources said. Tesla will be allowed to use its software to collect data about vehicles' surroundings.

The deal follows Tesla Chief Executive Elon Musk's visit with China's Premier Li Qiang.

Baidu's ( BIDU ) shares were up 5.4% in recent Monday premarket activity.

Neither Tesla nor Baidu ( BIDU ) immediately replied to MT Newswires' requests for comment.

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