Media reports have it that Elon Musk, is in Beijing to discuss implementing autonomous driving mode on Tesla cars in China.
Mr. Musk aims to introduce Full Self Driving (FSD) capabilities in China and transfer locally collected data abroad to enhance its algorithms.
While FSD is operational in countries like the US, it is not yet available in China.
This development follows a US report linking Tesla’s autonomous driving features to at least 13 accidents, including one fatality.
China stands as Tesla’s second-largest market. Competitors such as Xpeng, headquartered in Guangzhou, are striving to rival Tesla by incorporating similar self-driving features in their vehicles.
To address concerns, Tesla has previously made efforts to reassure Chinese authorities, including establishing a data center in Shanghai to process consumer data in compliance with local regulations.
The visit coincides with the US National Highway Traffic Safety Administration’s (NHTSA) investigation into whether a recall effectively addressed safety issues related to Tesla’s driver assistance system.
The NHTSA noted that despite requirements for drivers to remain attentive and ready to take control when autonomous driving is activated, drivers involved in the crashes “failed to sufficiently engage.” The regulator’s analysis occurred before Tesla’s announced recall intended to address the issue.
Tesla’s software is designed to ensure driver attention and limit the feature’s use to suitable conditions, such as highway driving.
Mr. Musk has pledged that Teslas will serve as autonomous “robotaxis” for years. In 2015, he projected Teslas would achieve “full autonomy” by 2018, and in 2019, he anticipated robotaxis would be operational the following year.
This month, the Tesla CEO announced plans to unveil the company’s robotaxi in August.
Critics allege that Mr. Musk consistently exaggerates the potential of full autonomous driving to boost the company’s stock price, which has declined due to challenges such as global declines in demand for electric vehicles and competition from lower-cost Chinese manufacturers. Mr. Musk refutes these claims.
The carmaker’s profits plummeted in the first three months of the year to $1.13 billion (£910 million), down from $2.51 billion in 2023. Its stock has plummeted by 43% this year.