Wang Ye/Xinhua/AP
Elon Musk made a surprise visit to China, met officials and struck a deal with Baidu.
The agreement brings Tesla one step closer to launching its self-driving cars in China.
Tesla’s sales in China have stalled amid increasing competition from Chinese manufacturers and a price war.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Elon Musk’s surprise visit to China seems to have been worth it.
The billionaire unexpectedly traveled to Beijing over the weekend, met with high-ranking officials and inked a deal with Chinese search engine giant Baidu.
The tumultuous visit came just a week after the billionaire’s decision not to go on a planned trip to India to meet with Prime Minister Narendra Modi because he had “obligations” related to Tesla
Instead, Musk met in Beijing with Premier Li Qiang, China’s second-highest ranking politician, to discuss the introduction of Tesla’s fully self-driving technology (FSD) in the world‘s largest auto market. According to unnamed sources reported by “Bloomberg“The vehicle manufacturer is now expected to receive the green light for the technology in China.
Approval of the FSD software could help boost Tesla’s sales in China, which have slumped due to intense competition from local rivals and have also suffered from growing electric car fears elsewhere.
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Elon Musk was taken by minibus to his private jet at Beijing airport on Monday after a surprise visit to China. Greg Baker/AFP/Getty Images
Golden opportunity
The partnership with Baidu is about mapping and navigation functions for Tesla’s autonomous driving software. Baidu’s lane-level navigation and mapping will likely allow Tesla to make its autonomous driving services available in China, Bloomberg reported
Such a move could provide a much-needed boost to Tesla, which has lost its leadership in the world‘s largest electric vehicle market.
Tesla has struggled to keep up with Chinese suppliers in a price war. In 2023, Tesla lost its title as the world‘s largest seller of electric cars to BYD, which also plans to launch its own autonomous driving technology.
China’s sluggish economy and problems in the real estate market have also dampened consumer demand and made some wary of making big purchases.
The approval of FSD could have a significant impact on Tesla’s revenue, as the company charges $8,000 (€7,500) or $99 (€93) per month for a subscription in the US.
The Wedbush Analyst Dan Ives said, that the new agreement could open up FSD in China, “which I think could be the golden opportunity for Tesla,” according to CNBC.
Chinese authorities also said that Tesla cars manufactured in the country now meet data security requirements. In 2021, Beijing cracked down on the use of Teslas by government employees because of security concerns about the cameras in the vehicles.
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Read the original article in English here.