Reports suggest that Elon Musk’s visit to China led to an immediate benefit with a deal for Tesla to utilize mapping data from Baidu, a major web search company, to introduce driver-assistance technology to the largest car market globally. This marks a significant advancement.
Over the weekend, Musk made a surprise visit to China. He shared a photo of his meeting with Chinese Premier Li Qiang on the social network X, which he acquired in 2022.
According to sources referenced by Bloomberg News, Baidu, a dominant force in Chinese web search, will offer mapping and navigation services to aid Tesla in implementing driver-assistance technology labeled as “Full Self-Driving” (FSD). The provision of mapping services, crucial for driver-assistance technology, is strictly regulated by the Chinese government.
Despite its name, FSD does not enable autonomous driving. It necessitates a driver who is prepared to take control at any moment. Launching in China could enhance Tesla’s position in the competitive market there and boost revenue. The service costs $8,000 or $99 (£80) per month, but is not accessible in many countries.
Musk has had confrontational interactions with politicians in the past, criticizing U.S. President Joe Biden and entering a dispute in Brazil over censorship issues on X, formerly Twitter. However, his approach towards China’s second-ranking official, Li, was more conciliatory, expressing being “honored” to meet him.
However, Tesla operates a factory in Shanghai, and its Model Y was the third best-selling electric or plug-in hybrid vehicle in China in March 2024, according to CleanTechnica. BYD, a Chinese competitor to Tesla in electric car sales, has two top-selling models.
The news of Musk’s visit and the partnership with Baidu were met with enthusiasm by Tesla investors, who view potential self-driving capabilities as crucial for Tesla’s position as the most valuable automaker globally. Tesla’s stock price rose by 6% in premarket trading in New York.
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Dan Ives, a technology analyst at Wedbush investment bank, mentioned in a client note that Tesla’s future standing relies heavily on FSD and autonomous driving. He emphasized the significance of making FSD accessible in China, a step that appears to be imminent.
Source: www.theguardian.com
