Report: Green light for Tesla’s driver assistance system in China

After a lot of bad news, finally good news for Tesla: The American electric car maker has received general approval from the Chinese government to use its FSD driver assistance system in China. American news agency Bloomberg reported that on Monday.

Advertisement

Tesla was granted permission under certain conditions, says the report citing a person familiar with the matter who did not want his name mentioned because not all the parameters were known in detail. Therefore, Tesla has been able to overcome the two most important obstacles: an agreement with the Chinese technology group Baidu on maps and navigation systems and meet the requirements to address data security and data protection issues.

Elon Musk in China

The agreement came after Tesla CEO Elon Musk made a surprise trip to China on Sunday to seek approval for the FSD driver assistance program. However, their work requires constant monitoring and do not make Teslas autonomous vehicles, writes Bloomberg. In the US, Tesla recently lowered its driving assistance prices and now charges “only” $8,000 or $99 for a monthly subscription. By September, another $15,000 was due.

Although Tesla’s market entry into China has been eased in the past, Chinese electric car manufacturers such as BYD have recently stepped up and increased competition for Tesla. China is the US carmaker’s second most important sales market after the US home market, and Tesla also operates its largest-ever factory in Shanghai. The electric car company has recently been facing sales problems, driven by intense price competition in China. According to Bloomberg calculations, Tesla’s share of the Chinese car market fell from 10.5 percent in the first quarter of last year to around 6.7 percent in the last quarter of 2023. Advanced driver assistance systems are gaining ground in China. , and many local companies like Xpeng and Xiaomi use them as a selling point for their cars.

A possible turning point for Tesla

The approval of Tesla’s FSD in China could be a significant boost for the US group after it delivered 387,000 vehicles for the first time in the first quarter and surprisingly fewer vehicles than a year earlier. In light of weak sales worldwide, Tesla is apparently planning to lay off ten percent of its workforce. It is about avoiding similar structures in the interests of competition and bringing about cost reductions and increased productivity, it said. There are also problems with Tesla’s new Cybertruck. There are reports that there is a serious problem with the electric pedal. The automaker responds by halting shipments.

Through an alleged partnership with Baidu, Tesla can use the Chinese company’s navigation and mapping services. Baidu is one of about 20 qualified vendors that have advanced national mapping certifications that can be used for driver assistance features, according to Bloomberg. Tesla has been using Baidu for mapping and navigation in cars since 2020.

(name)