Elon Musk, the CEO of Tesla, is looking to expand his company’s pioneering autonomous driving technology by deploying Tesla robotaxis in China. This proposal, reportedly discussed during Musk’s recent visit to China, aims to test Tesla’s advanced driver-assistance package in one of the world’s most significant markets for electric vehicles.
During his visit to Beijing, Musk suggested testing Tesla’s Full Self-Driving (FSD) system on public roads through a fleet of robotaxis. The China Daily newspaper cited that Chinese officials were receptive to Musk’s idea, expressing hope that such a project would “set a good example.” However, they stopped short of giving immediate approval for widespread FSD functionality, indicating a cautious but open stance.
A major hurdle for the deployment of Tesla’s robotaxis in China is obtaining approval to collect and transfer the necessary data for training its autonomous systems. This complex issue was not extensively discussed during Musk’s visit, according to reports. Data security is a sensitive topic in China, and Tesla will need to navigate these regulations carefully to move forward with its plans.
“Robotaxi will be an epoch-making revolutionary product, which will make Tesla’s market value reach 10 trillion USD.” Musk previously said. According to CLS, Tesla’s recent massive layoffs are due to the shift of expenditures to Robotaxi as Musk has “completely changed” the direction of Tesla’s progress.
Tesla is reportedly preparing to apply for robotaxi tests in Shanghai, where its largest global factory is located. Elon Musk’s visit to Beijing primarily focused on discussing the rollout of FSD and securing government approvals for data transfer crucial to the development of autonomous vehicles. According to sources, Musk pitched the idea of sending a fleet of robotaxis onto China’s streets as a precursor to offering the FSD technology in customer cars.
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Despite the challenges, Tesla made notable progress in other areas during Musk’s trip. Reuters reported that Tesla gained approval for its Model 3 and Model Y electric vehicles to access parts of China previously restricted due to data security concerns. This approval was granted after Tesla’s cars were found to comply with the country’s data-security regulations by a leading automotive association.
Last month, Elon Musk announced via a simple tweet that Tesla would unveil its first robotaxi on August 8, 2024. This event is highly anticipated as almost eight years have passed since Musk outlined his vision for a driverless future in his “Master Plan, Part Deux.” In this plan, Musk suggested that owners of autonomous cars could earn money by hiring out their EVs for rides and that Tesla would operate fleets of robotaxis in areas with high demand for such services.
There have been reports of exploratory talks between Tesla and Baidu Apollo, Baidu’s self-driving project, regarding the robotaxi service launch in China. In April, it was reported that Baidu and Tesla expanded their licensing agreement for mapping services, enhancing the accuracy of Baidu’s maps provided to Tesla, though this does not directly impact Tesla’s FSD functionality.
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Baidu Apollo, which focuses on level 4 (L4) autonomous driving, has already established a significant presence in China. Baidu received permits to operate robotaxi services at Daxing International Airport in Beijing and launched the country’s first 24/7 fully driverless robotaxi service in Wuhan. Baidu’s autonomous driving fleet operates in multiple cities, including Chongqing, Wuhan, and Shenzhen, and has accumulated over 4.1 million ride orders as of September 2023.
Tesla’s entry into the Chinese robotaxi market would face stiff competition from established players like Baidu, WeRide, Pony.ai, and AutoX. These companies have already made significant strides in autonomous driving technology and have operational robotaxi services in various Chinese cities.
