Elon Musk, the CEO of Tesla, recently visited Beijing to finalize arrangements with Chinese regulators and an AI company to potentially allow Tesla to offer its most advanced self-driving software in China. Tesla faced hurdles, including obtaining regulatory approval and access to high-resolution maps, but Musk’s trip signifies progress in this area. Musk emphasized the importance of self-driving technology and AI in Tesla’s future during his visit. Approval in China would be a significant win for Tesla after facing regulatory challenges in the United States.
During his trip, Musk met with Premier Li Qiang, a longtime ally who helped facilitate the construction of Tesla’s largest car assembly plant in Shanghai. The China Association of Automobile Manufacturers announced that Tesla and five Chinese automakers had obtained approval for their data security precautions on various car models, including Tesla’s Model 3 and Model Y. Tesla has been running a data center in Shanghai for three years to handle the extensive information collected by its cars as they navigate Chinese roads. The deal with Baidu will provide Tesla with high-resolution maps of road lanes.
Baidu is among the few Chinese companies with the credentials to access high-resolution mapping data in China. Automakers must partner with these companies to obtain such data, or rely heavily on cameras on their vehicles to create their own maps. Details of the agreements between Tesla and Chinese regulators, as well as the deal with Baidu, have not been disclosed. Tesla’s stock rose after news of the approvals in China, amidst financial difficulties being faced by the company, including a plunge in profit and revenue, and layoffs affecting 10% of its worldwide workforce.
Despite concerns raised by regulators and safety experts about the capabilities of Tesla’s self-driving technology, the company is pushing ahead with the introduction of self-driving features in its cars. Tesla already offers a “supervised Full Self-Driving” option in the United States, allowing customers to upgrade from its driver-assistance systems for a monthly fee. However, the National Highway Traffic Safety Administration is investigating Tesla’s Autopilot system recall due to concerns about driver attentiveness while using the technology, following fatal accidents involving Autopilot and Full Self-Driving.
Regulators have expressed concern about Tesla’s use of the term “autopilot,” suggesting it may lead drivers to overestimate the system’s capabilities. The agency is also investigating fatal crashes involving Ford Motors’ BlueCruise system, which allows hands-free driving on many U.S. highways. Despite challenges faced by Tesla and other companies in the self-driving sector, China, as well as the United States, have seen deaths resulting from mistakes made by self-driving cars. However, viral videos of crashes caused by human drivers in China contribute to the belief that self-driving cars may be safer.
In conclusion, Tesla’s efforts to obtain approval for its advanced self-driving software in China are a significant step towards expanding its presence in the country. The agreements with regulators and AI companies, including Baidu, reflect Tesla’s commitment to pushing the boundaries of self-driving technology and AI. Despite regulatory challenges and safety concerns, Tesla is forging ahead with integrating self-driving features into its cars, reflecting the company’s belief in the future of autonomous driving. The outcomes of the investigations by regulators in China and the United States will have a significant impact on the development and adoption of self-driving technology in the automotive industry.
