Tesla Enters China
Elon Musk and Tesla have reportedly struck a lucrative deal with China’s internet behemoth Baidu, according to Reuters. Baidu Inc., based in Beijing, is a multinational company that produces a variety of internet-related technology. It is the leading search engine in China.
Tesla wishes to collaborate with Baidu for a different reason, however. Subscription-based driver assistance technology could pave the way for Tesla’s success in the largest foreign market outside the USA. To achieve this, Baidu has granted access to its new AI mapping and navigation technology, as well as data for public roads, to improve and enhance FSD for Chinese use.
This entire decision comes after a meeting between Elon Musk and China’s Li Qiang. Li Quiang is a politician in the Chinese Communist Party, only seconding Xi Jinping himself.
Musk is pushing for government approval to roll out Tesla’s FSD software in China. Although FSD (full self-driving) has been on the market for around four years, this is the first time we have seen a breakthrough in the Chinese market.
The Purpose Behind the Team-Up
Companies looking to manufacture or sell self-driving cars in China must obtain a mapping qualification, hence the collaboration with Baidu and the access to mapping and public road data. Foreign companies seeking business opportunities are required to partner with domestic organizations to gain trust, licenses, and resources which increases the chances of approval from the government.
Bloomberg reported that Tesla also cleared data security and privacy requirements in the country upon their visit.
It is good to see electric vehicles making progress in China. All cars will be electric in the future, Elon Musk on X.
The company’s recent revenue decline, as indicated by its Q1 report, is motivating Tesla to further expand its market. Musk also promised new, more affordable EVs to begin production in early 2025. Whether this holds to be true, we don’t know.
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Cover Image– The Financial Times
