Elon Musk visits China as Tesla looks to launch self-driving technology

Elon Musk visits China as Tesla looks to launch self-driving technology

Tesla ( TSLA.O ) Chief Executive Officer Elon Musk arrived in Beijing on Sunday on an unannounced visit, where he is expected to meet senior officials to discuss the launch of Full Self-Driving software and permission to transfer data overseas, according to a person with knowledge of the matter. . that thing.

Chinese state media reported that he met with Premier Li Qiang in Beijing, where Li told Musk that Tesla’s development in China could be considered a successful example of US-China economic and trade cooperation.

The US electric vehicle maker launched Full Self-Driving, or FSD, the most autonomous version of its Autopilot software, four years ago but has yet to make it available in China, its second-biggest worldwide market, despite customer pressure to do so. so.

Musk said this month that Tesla may make FSD available to customers in China “soon,” in response to a query on X’s social media platform.

Rival Chinese automakers such as Xpeng ( 9868.HK ) have sought to gain an edge over Tesla by rolling out similar software.

Elon Musk’s private jet taxis on the runway, at an airport in Beijing, April 28, 2024. PICTURE: REUTERS

Musk is seeking approval to transfer data collected in the country overseas to train algorithms for his autonomous driving technology, the person said.

Tesla since 2021 has stored all data collected by its Chinese fleet in Shanghai as required by Chinese regulators and has not transferred anything back to the United States.

Musk’s visit to China, first reported by Reuters, was not publicly flagged and the person spoke on condition of anonymity because they were not authorized to speak to the media. Tesla did not immediately respond to a request for comment.

Chinese state broadcaster CCTV, in its report on Musk’s meeting with Li, did not say whether the two had discussed FSD, or data.

Earlier in the day, a separate report aired by state radio said Li had visited the ongoing Beijing auto show and had commented on how China’s smart new energy vehicle (NEV) sector had gained a dominant position in the market and the country had to work. hard and maintain its edge.

Musk also met with Ren Hongbin, a government official who heads the China International Trade Promotion Council, the organizer of the Beijing auto show, state media reported.

“It’s good to see electric vehicles making progress in China. All cars will be electric in the future,” Musk said in a video posted on social media by users affiliated with state media.

Musk’s trip comes more than a week after he canceled a planned visit to India to meet with Prime Minister Narendra Modi, citing Tesla’s “very heavy obligations.”

The company said this month it will lay off 10% of its global workforce as it grapples with falling sales and an intensifying price war for EVs led by Chinese brands.

US auto safety regulators said on Friday they had opened an investigation into whether Tesla’s recall of more than 2 million vehicles in the US announced in December to install new Autopilot protections was sufficient following a series of crashes.

Landed in Beijing

A Gulfstream private jet with tail number N272BG, registered to Falcon Landing, a company connected to SpaceX and Tesla, landed at Beijing Capital Airport on Sunday at 0603 GMT, according to China’s flight-tracking app Flight Manager.

Another jet registered under Falcon Landing is N628TS, which is Musk’s primary jet he used to travel to China on his last trip almost a year ago, when he met with Chinese government officials in Beijing and visited the Tesla factory in Shanghai.

Tesla has sold more than 1.7 million cars in China since it entered the market a decade ago and the Shanghai factory is the largest in the world.

Musk’s visit coincides with the Beijing auto show, which opened last week and ends on May 4. Tesla does not have the biggest auto show booth in China and last attended in 2021.

GM ( GM.N ) Chief Executive Officer Mary Barra made an unannounced visit to the show in the world’s biggest auto market on Friday, according to two people familiar with the schedule. GM did not immediately respond to a request for comment.

A staff member looks at Tesla’s new Model 3 sedan displayed next to the Model X SUV at the China International Trade Fair for Services (CIFTIS) in Beijing, China September 2, 2023. PHOTO: REUTERS

Also on Friday, Grace Tao, Tesla’s vice president in charge of external relations in China, published a comment on the social media account of state media outlet People’s Daily, arguing that autonomous driving technology will be a new growth engine for the EV industry.

Tao said in the article that Tesla is leading the research and development of autonomous driving with “end-to-end neural network” technology and data collected from millions of cars on the road.

China’s complicated traffic conditions with more pedestrians and cyclists than in many other markets provide more scenarios that are important for training autonomous driving algorithms at a faster rate, according to industry experts.

Musk said last week Tesla would introduce a new, cheaper model using its current EV platform and production line and would offer new “robotics” with self-driving technology. He said in a post on X this month that he will introduce a robotaxi on August 8.

Tesla shares are down nearly a third since the start of the year as concerns have grown about the EV maker’s growth trajectory. Last week, Tesla reported its first drop in quarterly earnings since 2020 as the COVID-19 pandemic slowed production and deliveries.