Tesla’s Fully Automated Driving (FSD) software is set to enter the Chinese market with CEO Elon Musk’s surprise visit to Beijing. Musk’s visit shows Tesla’s ambition to bring its most advanced autonomous driving technology to China, the company’s second largest market outside the US, Reuters reported.
Musk’s visit to Beijing was to negotiate with top regulators not only regarding the implementation of FSD but also regarding the authorization to use data obtained in China to train Tesla’s autonomous driving algorithms. Despite customer demand, Tesla has yet to roll out FSD in China, despite launching it in the US four years ago.
The delay has allowed Chinese automakers like Xpeng to launch similar autonomous driving software. Tesla’s entry into the FSD market in China has the potential to increase competition in the rapidly growing electric vehicle (EV) sector in the country.
To address regulatory concerns, Tesla has been storing all data collected by its Chinese fleet in Shanghai since 2021, as required by Chinese regulations. Musk’s discussions with Chinese authorities are aimed at obtaining approval for the transfer of this data abroad.
During his visit to Beijing, Musk met with Ren Hongbin, Chairman of the China Council for International Trade Promotion, which coincided with the ongoing Beijing auto show. Although the show does not have a booth, Musk’s visit shows that Tesla is strategically focused on the Chinese market.
In a video shared on social media, Musk said he was optimistic about China’s electric vehicle future, saying, “In the future, all vehicles will be electric.” However, Tesla is facing declining business in its home market and increasing competition from Chinese EV companies.
In addition, the US auto safety regulator has begun investigating whether Tesla has adequately updated Autopilot protections by recalling more than 2 million vehicles in the US.
Critics accuse Musk of exaggerating the future of fully automated driving to boost Tesla’s share price. But Musk remains committed to Tesla’s future, with plans to introduce new, cheaper models and a self-driving “robotaxi” or “Cybercab”.
