Tesla has been an incredibly interesting company to follow ever since it went public. While the company does have its fair share of hurdles, the idea of clean running, luxury vehicles has kept investors interested. Now, things are shaking up even more, thanks to changing opinions with regard to auto manufacturers in China. Today, we'll talk about what's going on, why it's important for Tesla, and what binary options traders should be watching when trading the stock ahead.

What's Going On In China

China has long been a market that Tesla and other electronic vehicle manufacturers have been interested in. However, they haven't been able to make vehicles in the region. While there are no laws that completely ban foreign car makers from making vehicles in China, strict laws have made it overwhelmingly difficult to do so.

You see, at the moment, in order for auto manufacturers to make cars in China, they must partner with local auto manufacturers. A big part of this is that the foreign manufacturers have to share trade secrets that would strengthen Chinese manufacturer positions in the global marketplace. Of course, that doesn't bode well in the highly competitive global automobile industry.

Nonetheless, China is noticing climate change and may be changing this rule for auto manufacturers that focus on electronic vehicles. While this may not be good news for gas guzzler manufacturers, it's great news for electric vehicle manufacturers. Of course, Tesla will likely gain big if all goes well.

While the change hasn't been made yet, the story has been hitting headlines. In about a month, a vote will take place. If things go well with this vote, the law will change sooner, rather than later, expanding the market for Tesla in a massive way.

Why This Is So Big For Tesla

As investors, it's easy to look at things on an economic scale. For example, we see that Apple is in the United States. Because the United States economy is massive, the company is in the perfect market for its products. However, that's not necessarily the case all the time. In fact, it's not the case for Tesla.

While the United States is a great market, it isn't the best for the automobile industry. In fact, the number one position goes to China. More cars are purchased in the country than anywhere else, consistently every year. So, if the law gets changed and Tesla is able to be one of the first foreign electric vehicle manufacturers in the market, it could be a game changer.

What Binary Options Traders Should Be Watching Ahead

Moving forward, there's no doubt in my mind that we're going to see opportunities for binary options traders surrounding Tesla ahead. Moving up to the announcement of whether or not the law will be changed, it's anyone's guess. The stock could go up or it could go down, that all depends on how the stock is covered in the media and investor sentiment. However, when the news comes down the line that China has either decided to change the law or keep it the same, we'll likely see the big movement. Of course, if the law stays, it wouldn't be good for the company and if the law changes, it could be a great thing for the stock. Nonetheless, either way this thing goes, it will be good for binary options traders.