NEWS  Electric Vehicles  April 30, 2024  Reading time: 2 Minute(s)

Max (RS editor)

Elon Musk’s recent visit to Beijing has sparked significant interest in the technology and automotive sectors. The trip was unannounced, with Musk meeting with the Chinese Prime Minister, leading to what insiders describe as fruitful discussions. The primary focus was Tesla's Full Self-Driving (FSD) service, which has reportedly been greenlit by Chinese regulators, signaling a major step forward for autonomous driving in one of the world's largest automotive markets. This news has propelled Tesla's stock price upward, with a 10% increase in premarket trading.

Baidu to Provide Mapping Services

While Tesla's approval to launch FSD in China is promising, it comes with certain stipulations. Due to China's strict data protection and privacy laws, Tesla must use the mapping services of Baidu, the country's leading search engine and mapping provider. This requirement aligns with China's broader approach to data security, ensuring that all data remains within the country's borders.

Tesla's Vice President for China, Grace Tao, emphasized the importance of Baidu's mapping services in this context, stating:

"Autonomous Driving technology is revolutionizing the industry, becoming a key driver for new productivity growth in the new energy vehicle sector."

Tesla's agreement to work with Baidu reflects its commitment to complying with local regulations while expanding its autonomous driving technology.

Positive Reception from Local Automakers

Tesla's entry into the Chinese market with its FSD technology has received a warm welcome from local automakers. XPeng, a major Chinese electric vehicle manufacturer with its own self-driving technology, praised Tesla's presence. The CEO of XPeng expressed optimism about the potential for FSD to accelerate the deployment of autonomous vehicles, stating that "fully autonomous driving is one of the best business scenarios for the large models".

This positive reception is a testament to the collaborative spirit among companies aiming to push the boundaries of autonomous driving technology. Tesla's approach to using local mapping services and adhering to data security requirements demonstrates its commitment to working within the Chinese regulatory framework.

Implications for the Stock Market

The news of Tesla's impending FSD launch in China has had an immediate impact on its stock price. After months of decline, the announcement of Chinese regulatory approval sparked a rally, with Tesla's stock price jumping more than 10% in premarket trading. This surge indicates investor confidence in Tesla's strategy and the potential growth opportunities in the Chinese market.

Future Prospects for Tesla's FSD and Robotaxi Services

With approval for FSD, Tesla may also explore launching its Robotaxi and CyberCab ride-hailing services in China. These services could further revolutionize the transportation landscape by increasing vehicle utilization, reducing traffic congestion, and contributing to environmental sustainability. By complying with China's regulations and leveraging local partnerships, Tesla is poised to make a significant impact in the Chinese market.

 IMAGES CREDITS: TESLA / BAIDU