Topline
Tesla has agreed to a deal with Chinese search giant Baidu for its mapping and navigation functions, according to several reports on Monday, as the carmaker’s CEO Elon Musk met with senior government officials in China in a purported push to gain approval for its driver-assistance technology.
Key Facts
As part of the deal, Tesla will gain access to Baidu’s mapping and navigation tech to power its driver assist feature it calls Full-Self Driving, Bloomberg and Reuters reported citing unnamed sources.
Tesla will be able to tap into Baidu’s mapping license, a requirement for carmakers to launch self-driving or driver-assist features for use on China’s public roads, the Reuters report added.
Foreign companies need to partner with local firms to access the license, which will allow Tesla’s cars to gather essential data about traffic, road signs and routes.
Citing the China Association of Automobile Manufacturers, Bloomberg reported Tesla’s cars have also cleared an important data security and privacy requirement in the country, which tests a vehicle’s collection and handling of “sensitive personal information.”
The two developments come amid Musk’s visit to China, where he met several top officials to reportedly gain approval for launching Tesla’s Full Self Driving feature in the country, as the company faces stiff competition from local EV makers.
On Sunday, Musk said he was “honored to meet” Chinese Premier Li Qiang—the country’s senior-most leader after President Xi Jinping.
What To Watch For
It is unclear if the deal with Baidu will convince officials in China to allow Tesla to launch its so-called Full Self Driving service. Despite its name, the feature does not support fully autonomous driving and always requires a human driver’s oversight. The technology has also come under major scrutiny in the U.S., after flaws in the system have been linked to several crashes, including 13 which were fatal. In China, concerns about Tesla’s data collection practices have led to a ban on its vehicles from entering military sites, government agency compounds and state-owned company locations.
Tangent
According to Reuters, Robin Zeng, the chair of Chinese battery firm CATL was seen at Musk’s hotel in Beijing on Monday. CATL is a key local supplier for Tesla.
Big Number
32.26%. That is how much Tesla’s share price has dropped since the start 2024 as the company has faced a decline in sales and the botched launch of its newest product, the Cybertruck.
Further Reading
Tesla Clears Key China Assisted-Driving Hurdle With Baidu Deal (Bloomberg)
Baidu, Tesla agree on mapping deal for FSD in China, sources say (Reuters)
