Elon Musk visited Beijing to discuss regulatory approval and access to high-resolution maps for Tesla’s self-driving technology. The company needed permission from Chinese regulators to offer its most advanced level of autonomous driving, called supervised Full Self-Driving. Musk emphasized the importance of self-driving technology and artificial intelligence to Tesla’s future during his trip. Tesla has been facing challenges in the United States regarding the safety and performance of its self-driving system but received approvals in China by meeting data security requirements enforced by authorities and the China Association of Automobile Manufacturers.
During his trip, Musk met with Premier Li Qiang, China’s No. 2 official, who has been a longstanding supporter of Tesla. The government-backed China Association of Automobile Manufacturers announced that Tesla and five Chinese automakers had received approval for their data security precautions on various car models, including Tesla’s Model 3 and Model Y. The approval includes restrictions on software use, such as not identifying individuals outside of vehicles, which impact self-driving systems that rely on cameras. Tesla also reached an agreement with Baidu to access high-resolution maps of road lanes, essential for self-driving functionality in China.
Chinese automakers, alongside Tesla, are introducing electric car models as Tesla focuses on self-driving capabilities. Despite concerns from regulators and safety experts about Tesla’s self-driving technology, the company is ahead of competitors in implementing these features. In the United States, Tesla already offers supervised Full Self-Driving for a monthly fee. The National Highway Traffic Safety Administration is investigating Tesla’s recall of its Autopilot system due to concerns about driver attentiveness. The agency highlighted the importance of ensuring drivers understand the limitations of automation to prevent accidents.
China has also experienced fatalities involving self-driving technology but is actively embracing autonomous vehicles. Chinese companies, in addition to Tesla, have introduced self-driving cars, contributing to a perception that these vehicles may be safer than human-driven cars. Despite the risks associated with self-driving technology, Tesla’s stock surged following the approvals in China. The company reported declining profits and revenue, leading to layoffs globally. Chinese government policies require multinational companies to share technology in exchange for market access, but they claim not to force companies to disclose commercial secrets. Tesla’s efforts to expand its self-driving capabilities in China mark a significant development for the company.
