Tesla received some encouraging news during CEO Elon Musk’s two-day visit to China, overcoming a major data security hurdle and sealing a deal to use maps created by China’s biggest search engine, moving it one step closer to being able to use its Autopilot technology in the country.
Both were positive developments for Tesla, which reported a steep plunge in profits last week, as it tries to convince Chinese regulators that its Full Self-Driving (FSD) software is safe for use — despite repeated crashes in the United States.
Tesla Inc. TSLA-Q (C.E.O) Elon Musk arrived in Beijing on Sunday on an unannounced visit, where he was expected to discuss the rollout of Full Self-Driving (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter.
Chinese state media reported that he met Premier Li Qiang in Beijing, during which Mr. Li told Mr. Musk that Tesla’s development in China could be regarded as a successful example of U.S.-China economic and trade co-operation.“Honoured to meet with Premier Li Qiang. We have known each other now for many years, since early Shanghai days,” Mr. Musk posted on social media platform X, as he appeared in a picture with the premier.
Tesla reached an accord with Chinese authorities for a plant in Shanghai, its first outside the United States, in 2018.The U.S. electric-vehicle maker rolled out FSD, the most autonomous version of its Autopilot software, four years ago but has yet to make it available in China, its second-largest market globally, despite customer demand.Mr. Musk said this month that Tesla may make FSD available to customers in China “very soon,” in response to a query on X.Equity analysts at Wedbush called the surprise visit “a major moment for Tesla.”
Mr. Musk is looking to obtain approval to transfer data collected in the country abroad to train algorithms for its autonomous driving technologies, the person said.
Mr. Musk’s trip came just over a week after he scrapped a planned visit to India to meet with Prime Minister Narendra Modi, citing “very heavy Tesla obligations.”The company said this month it would lay off 10 per cent of its global work force as it grapples with falling sales and an intensifying price war for EVs led by Chinese brands.
U.S. auto safety regulators said on Friday they had opened an investigation into whether Tesla’s recall of more than two million vehicles in the United States announced in December to install new Autopilot safeguards was adequate following a series of Crashes
Tesla has sold more than 1.7 million cars in China since it entered the market a decade ago and the Shanghai factory is its largest globally.
GM CEO Mary Barra made an unannounced visit to the show in the world’s biggest auto market on Friday, according to two people with knowledge of her schedule. GM did not immediately respond to a request for comment.
Also on Friday, Grace Tao, Tesla vice-president in charge of external relations in China, published a commentary on the social media account of state media outlet People’s Daily, arguing that autonomous driving technologies would be the new growth engine for EV industry.
Ms. Tao said Tesla was leading autonomous driving research and development with its “end-to-end neural network” technology and data collected from millions of cars on the road.
