Tesla CEO Elon Musk is in Beijing, reportedly to discuss enabling Full Self Driving (FSD) mode on Tesla cars in China. Musk aims to transfer data collected in China abroad to train Tesla’s autonomous driving algorithms, a feature currently unavailable in China.
The visit follows a US report linking Tesla’s autonomous driving modes to at least 13 crashes, including one fatality. Musk, during a meeting with Chinese Premier Li Qiang, expressed Tesla’s willingness to deepen cooperation with China for mutual benefit. Premier Li assured Musk that China’s market would remain open to foreign-funded firms.
China is Tesla’s second-largest market, and local competitors like Xpeng are rolling out similar self-driving features. Musk praised Chinese car manufacturers, calling them “the most competitive car companies in the world.”
Tesla has taken steps to address Chinese authorities’ concerns, including establishing a data center in Shanghai to process Chinese consumer data in compliance with local laws.
This visit coincides with the US National Highway Traffic Safety Administration’s investigation into whether a recall addressed safety concerns related to Tesla’s driver assistance system. The NHTSA found that drivers involved in the crashes “were not sufficiently engaged,” despite requirements to maintain focus and be prepared to take control when autonomous driving is enabled.
Musk has long promised autonomous “robotaxis” and has set various deadlines for achieving full autonomy, which critics argue is a tactic to boost Tesla’s share price. Tesla has been cutting prices to stimulate demand amid challenges such as falling global EV demand and competition from cheaper Chinese manufacturers.
Tesla recently reported a 13% fall in automotive sales to $17.3bn for the first three months of 2024, with overall sales down by 9% and profits sharply falling to $1.13bn compared to $2.51bn for the same period last year.
