Reports indicate that Tesla is gearing up to launch its Full Self-Driving (FSD) technology in China, following tentative approval from the government and a strategic agreement with tech giant Baidu. The Chinese Government is said to have granted conditional approval for Tesla to deploy its FSD semi-autonomous driving technology within the country.
According to The Wall Street Journal, sources familiar with the matter revealed that the government’s nod came after Tesla CEO Elon Musk’s recent meeting with Chinese Premier Li Qiang. Additionally, Tesla has reportedly secured a mapping and navigation partnership with Chinese tech titan Baidu, meeting the requirements related to data security and privacy concerns.
While Tesla seeks permission to transfer data collected from its vehicles in China to the US for training its driver assistance features, it faces rigorous approval processes for international data transfer. Nonetheless, the China Association of Automobile Manufacturers has affirmed that Tesla’s Model 3 and Model Y have passed tests and adhere to Chinese data security regulations.
The anticipated approval could grant Tesla access to sensitive Chinese military and government zones, which were previously off-limits to its vehicles. This development holds significant revenue potential for Tesla in China, especially as it aims to reverse a recent decline in sales amid stiff competition in the electric vehicle (EV) market.
FSD, offered by Tesla as both an outright purchase and a subscription, presents a more advanced driver assist feature than its Autopilot system. While FSD enables capabilities such as navigating city streets and making turns at intersections without driver input, it’s essential to note that Tesla emphasizes the need for active driver supervision.
Despite its name, FSD remains classified as a Level 2+ autonomous driving system, not a fully autonomous (Level 5) one. Tesla’s approach relies primarily on cameras, having omitted radar and ultrasonic sensors and opting out of LiDAR technology, which is prevalent among many high-tech Chinese vehicles.
Tesla’s recent price cuts for FSD in the US, along with reduced subscription costs, signal the company’s efforts to broaden accessibility to its advanced driving features. While FSD’s full suite is currently available only in North America, Tesla continues to expand its reach, with ongoing testing reported in multiple countries, including Australia.