Tesla will partner with Chinese search giant Baidu on mapping and navigation, and the American electric car company may soon roll out its advanced assisted-driving software in the world’s largest market for EVs, according to media reports and a person familiar with the matter.
Led by billionaire Robin Li, Baidu will provide Tesla with mapping and navigation functions needed for its Full Self-Driving (FSD) service, according to Bloomberg. This driver-assistance technology can allow users to drive near automatically, but hasn’t been available in China due to concerns including over data security.
Having a local partner could ease those concerns because by partnering with Baidu, Tesla doesn’t need to map out China’s roads and collect related data itself. Neither company responded to requests for comment.
Over the weekend, Tesla Chief Executive Elon Musk made a surprise visit to China and met with the country’s premier, Li Qiang, in Beijing on Sunday, according to the official Xinhua News Agency.
Xinhua didn’t provide details on Musk’s discussion with Li, who played a key role in setting up Tesla’s Gigafactory in Shanghai when he was party secretary of the city. But high on the billionaire’s agenda is negotiating the rollout of Tesla’s FSD service in China, which is its biggest overseas market by sales. Tesla is facing cut-throat competition and a fierce price war that shows every sign of accelerating.
Tesla, which started the year with falling quarterly deliveries and global layoffs, needs to gain an edge in China. Aside from sticker prices, local consumers are paying more attention to intelligent driving features, leading rivals from billionaire He Xiaopeng’s Xpeng to the Huawei-supported Aito brand to constantly upgrade their technologies.
Musk’s trip appeared to have helped clear not just the one hurdle, having a local partner for mapping and navigation, but two. The company’s locally made Model 3 and Model Ys passed key data security tests in China, according to a late Sunday post from the China Association of Automobile Manufacturers (CAAM).
Tesla has met local requirements including those on privacy and data collection, according to the CAAM post. That could be a boost because the company’s cars have been banned since at least 2021 from entering certain government-related compounds due to security concerns over cameras installed on the vehicles and the data they collect. According to CAAM, Tesla passed the tests together with local EV companies including BYD, Li Auto and Nio.
