In a significant development following Tesla CEO Elon Musk’s unannounced visit to China, the American electric vehicle giant has reportedly formed a strategic partnership with Chinese tech titan Baidu to introduce its advanced driver-assistance system in the world’s largest auto market.
According to sources familiar with the matter, this collaboration will enable Tesla to leverage Baidu’s lane-level navigation and mapping capabilities to deploy its Full Self-Driving (FSD) services in China.
Baidu, one of approximately 20 entities authorized to provide essential modules for autonomous driving functions in the country, will supply the necessary mapping and navigation features to support Tesla’s FSD rollout.
The partnership comes on the heels of Musk’s meeting with Chinese Premier Li Qiang during his brief trip to China, where he sought approval for the driver-assistance software to help reverse Tesla’s revenue downturn.
“Musk’s stealth visit seems to have yielded fruitful results,” Bloomberg reported, as Tesla has now surmounted two significant barriers to introduce its FSD technology in China. In addition to the Baidu deal, Tesla has also reportedly cleared a crucial data security and privacy requirement in China, which should help alleviate some concerns regarding the company’s data handling practices.
This milestone was confirmed by the China Association of Automobile Manufacturers (CAAM) in a circular issued on April 28th.
The lifting of data security restrictions is expected to facilitate the full access and parking of Tesla vehicles in previously restricted areas such as government campuses, airports, and highways.
“This was seen as the latest sign of Tesla’s FSD’s imminent entry into China and sparked widespread discussion on social media,” The Beijing News reported. Tesla had initially partnered with Baidu in 2020 for in-car mapping and navigation services in China. The new level of collaboration aims to address mapping concerns for more advanced self-driving features.
Neither Tesla nor Baidu has responded to requests for comment on the matter. While Tesla’s FSD suite requires constant oversight and does not render the vehicles fully autonomous, it is marketed in the US for $8,000 outright or $99 per month.
In China, FSD is priced at RMB 64,000 ($8,840) for purchase, with no subscription options currently available. The reported partnership between Tesla and Baidu is seen as a major step forward for Tesla’s China ambitions, as the successful deployment of its FSD software in the country could potentially position the company as a leader in autonomous driving technology in the region.
“At Baidu, we have long believed in the future of intelligent driving,” said Robin Li, co-founder and CEO of Baidu. Musk’s visit to China and the subsequent developments have been described by Wedbush analysts as “a major moment for Tesla,” noting that the availability of FSD in China, a key factor in Tesla’s long-term valuation story, now appears imminent.
With China being Tesla’s second-largest market globally, the Baidu partnership could provide a significant boost to the automaker’s revenue and growth prospects in the country.
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