Elon Musk’s Visit to Beijing Sparks Talks on Enabling Tesla’s Autonomous Driving in China
Elon Musk’s recent visit to Beijing has stirred discussions about enabling autonomous driving capabilities for Tesla vehicles in China, as per media reports.
Mr. Musk aims to introduce Full Self-Driving (FSD) features in China and plans to utilize data collected within the country to refine and train its algorithms. While FSD is already accessible in several countries, including the US, it is not yet available in China.
This development follows a US report linking Tesla’s autonomous driving systems to at least 13 accidents, including one fatality. Despite this, China remains Tesla’s second-largest market. Competitors such as Xpeng, headquartered in Guangzhou, are also striving to rival Tesla by integrating similar self-driving functionalities into their vehicles.
To address Chinese authorities’ concerns regarding the FSD rollout, Tesla has previously taken measures such as establishing a data center in Shanghai to process Chinese consumer data in compliance with local regulations.
The timing of Musk’s visit coincides with ongoing scrutiny from the US National Highway Traffic Safety Administration (NHTSA) regarding the efficacy of a previous Tesla recall in addressing safety issues related to its driver assistance system. The NHTSA’s investigation highlighted instances where drivers involved in accidents were allegedly not sufficiently engaged despite requirements for active supervision while using autonomous driving features.
Tesla’s software is designed to ensure driver attentiveness and restricts autonomous driving to appropriate conditions, such as highway driving. Musk has long promised that Tesla vehicles will eventually operate as autonomous “robotaxis,” though timelines for achieving full autonomy have repeatedly been postponed.
Critics accuse Musk of overhyping the potential of full autonomous driving to buoy Tesla’s stock price, especially amidst challenges such as waning global demand for electric vehicles and competition from more affordable Chinese manufacturers. However, Musk refutes these allegations.
Tesla’s profits notably declined in the first quarter of the year, dropping to $1.13 billion from $2.51 billion in the same period in 2023. Consequently, the company’s stock has experienced a significant 43% decline this year.