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Musk Offered to Launch Robotaxis in China for FSD Approval

Before a full FSD rollout, Tesla still needs Chinese approval to collect and transfer data that Tesla’s cars need to train its driver-assistance features


Tesla chief Elon Musk in his meeting with Chinese Premier Li Qiang in April 2024
Tesla chief Elon Musk in his meeting with Chinese Premier Li Qiang in April in Beijing. Image: State media / China Daily

 

Tesla chief Elon Musk proposed to test Tesla’s full self-driving (FSD) system in China by deploying it in the country’s robotaxis, according to Chinese state media reports on Wednesday.

Musk made his proposal during a surprise trip to China last month, during which he met Chinese Premier Li Qiang.

Chinese authorities agreed to offer partial support for Musk’s plan, saying Beijing “welcomes Tesla to do some robotaxi tests in the country” and hopes it can “set a good example”, state media China Daily reported citing sources.

 

Also on AF: Tesla’s EV Sales in China Down 18% Year-on-Year in April

 

Authorities, however, are yet to approve its widespread use of Full Self-Driving (FSD) functions, the newspaper added.

Before a full FSD rollout, Tesla still needs Chinese approval to collect and transfer data that Tesla’s cars need to train its driver-assistance features. The newspaper added that this issue wasn’t discussed in detail during Musk’s visit.

A person briefed on the matter told Reuters that Tesla is seeking to apply to launch the robotaxi tests in Shanghai, where the company’s largest factory globally is located.

Early last month Musk announced on Twitter plans to unveil Tesla Robotaxi on August 8. He added later that he chose the date partly “because 8/8 is a lucky number in China”.

 

 

China has been at the forefront in the development of self-driving cars, and companies such as Baidu and Toyota-backed Pony.ai have launched robotaxi services in limited test zones in several cities.

China is also the world’s largest electric vehicle market – and a key Tesla market – making it crucial for Musk to gain approval to roll out its self-driving functions in the country.

Industry analysts estimate that China may still approve Tesla’s FSD rollout with an aim to spark-off the ‘catfish effect’ – a race among local rivals to innovate and deploy better self-driving tech.

 

Baidu deal ‘won’t help FSD roll-out’

The China Daily report also clarified that Tesla’s recent deal with Chinese internet giant Baidu was unrelated to the carmaker’s push to launch its FSD system in the country.

During Musk’s Beijing trip, Tesla had reached an agreement with Baidu to use its mapping licence for data collection on China’s public roads.

People with knowledge of the matter indicated at the time that the deal was a step toward FSD rollout in China.

But citing a source close to Baidu, the China Daily report said that the deal only meant that the accuracy of Baidu’s maps provided to Tesla would be improved.

It had no direct relation with FSD, the newspaper said.

Tesla has been in a partnership with Baidu since 2020. The carmaker has already integrated Baidu’s navigation map into its vehicles in China, China Daily noted.

 

  • Reuters, with additional inputs from Vishakha Saxena

 

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Raimondo Says Chinese EVs Are a National Security Risk For US, EU

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]