Renowned entrepreneur Elon Musk has embarked on a visit to Beijing, China, with reports indicating that he is keen on discussing the potential for enabling autonomous driving mode on Tesla cars specifically in the Chinese market.
Mr. Musk’s primary objective is to introduce Full Self Driving (FSD) capabilities in China and to facilitate the transfer of data collected within the country to train its algorithms effectively.
While FSD is already available in several countries, including the US, it has yet to be implemented in China.
This development comes on the heels of a US report linking Tesla’s autonomous driving modes to at least 13 crashes, one of which resulted in a fatality.
During a meeting with Chinese Premier Li Qiang, Mr. Musk expressed Tesla’s readiness to engage in extensive cooperation with China to achieve mutually beneficial outcomes.
Chinese Premier Li assured Mr. Musk that the Chinese market remains open to foreign-funded companies, reflecting China’s commitment to fostering a conducive business environment.
China stands as Tesla’s second-largest market, with competitors like Xpeng, based in Guangzhou, striving to rival Tesla by incorporating similar self-driving features in their vehicles.
Mr. Musk lauded Chinese car manufacturers as being “the most competitive car companies in the world” during his recent remarks, showcasing his respect for the Chinese automotive industry.
To allay any concerns, Tesla has made efforts to reassure Chinese authorities regarding the rollout of FSD in the country, including establishing a data center in Shanghai for processing Chinese consumer data in compliance with local regulations.
This visit follows the announcement by the US National Highway Traffic Safety Administration (NHTSA) that it is investigating whether a previous recall adequately addressed safety issues related to Tesla’s driver assistance system.
Despite requirements mandating drivers to maintain focus on the road and be ready to take control when autonomous driving is engaged, the NHTSA found that drivers involved in the accidents were not adequately engaged, underscoring the need for increased vigilance.
Over the years, Mr. Musk has made bold promises regarding Tesla’s autonomous capabilities, envisioning Teslas as autonomous “robotaxis.” However, critics have accused him of overhyping these features to bolster the company’s stock price.
Furthermore, Tesla has been adjusting the prices of its vehicles in various markets, including China, in response to fluctuating demand and market conditions.
Despite these challenges, Tesla reported a decline in automotive sales for the first quarter of the year, reflecting a broader trend of falling demand for electric vehicles globally and increased competition from more affordable Chinese brands.
As Mr. Musk continues his discussions in China and navigates the complexities of the automotive industry, the future of Tesla’s autonomous driving capabilities and market positioning remains uncertain.
