Tesla in China: Robotaxi Trials Possible After Elon Musk's Beijing Visit

Elon Musk has recommended testing Tesla's full self-driving function (FSD) in China using robotaxis, per Chinese official media.

According to Al Jazeera, citing a report by the state-backed China Daily on Wednesday, sources said Chniese officials told Musk during his recent visit to China that Beijing welcomes Tesla to perform robotaxi experiments to set a positive example.

According to the publication, Chinese authorities have not yet approved Tesla's broad use of FSD. As of present reporting, Tesla has not yet commented on the matter.

Results of Elon Musk's Surprise China Visit

During his Beijing visit, Elon Musk met with Chinese Premier Li Qiang without an announcement. Tesla's top executive also signed an agreement with Baidu to use its mapping license to collect data on China's public roads and obtained the support of a major Chinese car association for Tesla's data-security standards.

Tesla needs Chinese regulator clearance to acquire and send the data required to train its software before fully integrating FSD, according to the China Daily. The Tesla co-founder's recent China visit did not resolve this issue.

The development comes as the tech mogul has diverted Tesla's attention from inexpensive electric vehicles to autonomous driving software, robotaxis, and humanoid robots, per Reuters.

The EV maker's first-quarter vehicle deliveries decreased 8.5 percent, causing a 40 percent decline in its stock value since July. Tesla recorded first-quarter profits of $1.1bn last month, down from $2.51bn a year earlier.

BYD overtook Tesla as the world's largest electric car producer in the fourth quarter of 2023, but Tesla recaptured the distinction in the first quarter of the current year.

Musk Sends Tesla's 'Fireman' to China Amid Stiff EV Market Competition

Notably, Elon Musk's latest visit to Beijing included the deployment of Tom Zhu, Tesla's former China chief. According to a source, Tesla is moving Zhu, one of the three top executives, from Texas to China as the EV firm hopes to solve problems in the world's largest electric vehicle market, as reported by The Wall Street Journal.

Tom Zhu was known as the "fireman" for his ability to solve problems and meet goals, helping Tesla's Shanghai manufacturing become a top performer. Tesla's largest overseas facility in Shanghai produces half of its electric vehicles.

Tesla took action to revive its China business amid rising competition in the EV market.

Zhu, who joined Tesla in 2014, has helped navigate China and build ties with local officials. Staff praised his diligence and swift decision-making during the Shanghai COVID lockdowns.

Tom Zhu and Elon Musk received Chinese government clearance to launch Tesla's "Full Self-Driving" (FSD) software last month, per the report.

Tesla plans to expand its use of FSD technology by partnering with Baidu. However, it must persuade Beijing that transferring car data from China to the United States would not jeopardize national security.

Tesla's problems in China worry investors, especially as local competitors provide comparable autopilot capabilities at lower prices and with more car types. Amid recent challenges, The EV maker has cut its workforce worldwide, including in China, affecting thousands of personnel across divisions.