BEIJING, China, April 28: Tech mogul Elon Musk is currently in Beijing, reportedly aiming to engage in discussions regarding the implementation of autonomous driving features on Tesla vehicles in China.
Musk’s objective is to enable Full Self-driving (FSD) capabilities in Tesla cars in China and utilize data collected within the country to enhance the training of its algorithms. While FSD is already available in countries such as the US, it has yet to be introduced in China.
The announcement follows a US report linking Tesla’s autonomous driving modes to at least 13 accidents, including one fatality. Despite these concerns, Musk expressed willingness for Tesla to deepen its collaboration with China during a meeting with Chinese Premier Li Qiang. Li assured Musk that the Chinese market remains open to foreign-funded enterprises.
China stands as Tesla’s second-largest market, with domestic competitors like Xpeng striving to rival Tesla by incorporating similar self-driving functionalities into their vehicles.
To address regulatory concerns, Tesla has previously established a data center in Shanghai to process consumer data in compliance with local regulations.
Musk’s visit coincides with the US National Highway Traffic Safety Administration’s investigation into whether a recall adequately addressed safety issues related to Tesla’s driver assistance system. The agency noted instances where drivers involved in accidents were allegedly not sufficiently attentive while using autonomous driving features.
Despite ongoing challenges and criticism regarding the rollout of autonomous driving technology, Musk has remained optimistic about Tesla’s prospects, including the introduction of robotaxis. However, Tesla’s financial performance has faced headwinds, with a 13% decline in automotive sales and a significant drop in profits reported for the first quarter of this year.
In response to market dynamics and demand fluctuations, Tesla has resorted to price adjustments in various markets, including China, where it aims to stimulate demand amidst intensifying competition and evolving regulatory landscapes.