Tesla CEO Elon Musk made a surprise visit to Beijing, China, signaling the company’s accelerated efforts to roll out Full Self-Driving (FSD) technology and expand its presence in the world’s largest electric vehicle market.
While in Beijing, Musk is expected to meet with senior officials to discuss the long-awaited release of Tesla’s FSD software in China, as well as seek permission to transfer data overseas for training autonomous driving algorithms. The move comes as Tesla faces increasing pressure from Chinese rivals like Xpeng, who have been aggressively developing similar autonomous software.
Despite Tesla’s FSD being available for four years, the company has yet to offer it in China, its second-largest market globally. However, Musk recently hinted at its imminent release, responding to queries on social media with promises of availability “very soon.”
The visit also aims to address data transfer concerns. Tesla has stored all data collected by its Chinese fleet in Shanghai since 2021, complying with local regulations. Musk’s discussions with Chinese authorities will likely focus on obtaining approval to transfer this data abroad for further algorithm training.
Musk’s itinerary includes meetings with government officials, including Ren Hongbin, head of the China Council for the Promotion of International Trade, who oversees the ongoing Beijing auto show. In a video posted online, Musk expressed optimism about the future of electric vehicles in China, stating, “All cars will be electric in the future.”
The timing of Musk’s visit coincides with the Beijing auto show, where Tesla notably does not have a booth this year. However, Tesla’s presence remains significant in China, with the Shanghai factory being its largest globally.
Despite Tesla’s dominance in the EV market, Musk’s visit follows recent challenges for the company. Tesla announced layoffs of 10% of its global workforce amid falling sales and increasing competition, particularly from Chinese brands. Additionally, U.S. auto safety regulators are investigating the adequacy of Tesla’s recent recall of over 2 million vehicles in the U.S. to install new Autopilot safeguards.
Musk’s trip to China comes after he canceled a planned visit to India due to “very heavy Tesla obligations.” Nevertheless, Tesla continues to prioritize its global expansion and technological advancements.
Grace Tao, Tesla’s vice president for external relations in China, emphasized the importance of autonomous driving technologies in a recent commentary. She highlighted Tesla’s leadership in this field, citing its “end-to-end neural network” technology and data collected from millions of vehicles on the road.
China’s complex traffic conditions provide unique challenges and opportunities for autonomous driving development. Industry experts note that the country’s crowded streets with pedestrians and cyclists offer valuable scenarios for training autonomous driving algorithms, potentially accelerating Tesla’s progress in this area.
Looking ahead, Musk announced plans to introduce new, cheaper models using existing EV platforms and production lines. He also teased the launch of a new “robotaxi” equipped with self-driving technology, scheduled for unveiling on August 8.
Despite recent challenges and concerns about Tesla’s growth trajectory, Musk remains optimistic about the company’s future. With a strong focus on innovation and expansion, Tesla continues to drive forward in the global electric vehicle market.
