Will Tesla's Full Self-Driving Be Commercialized in China?

Tesla has laid the groundwork for commercializing its Full Self-Driving (FSD) system in China as well.

In this regard, smart cars that have been restricted in their operation, stopping, etc., in key areas, public institutions, and airports within China are expected to be able to operate without restrictions.

Major Chinese media outlets reported on the 28th that Tesla became the first foreign car company to receive approval from Chinese authorities for its data safety inspection.

■ Tesla Model Y/Model 3 Passes China's Data Safety Inspection

It has been reported that the Tesla Model Y and Model 3 produced at the Gigafactory Shanghai have passed the four-item safety requirement inspection for Chinese automobile data processing.

The companies that passed the Chinese authority inspection this time are Tesla, Nio, BYD, Hozon, Lotus, and Li Auto, a total of 6 companies (76 vehicles in total).

Due to this inspection passage, Tesla has now become eligible to introduce the FSD software in China.

Tesla launched the FSD software about 4 years ago, but it was unable to commercialize it due to regulations imposed by the Chinese authorities.

However, with the passage of this inspection, smooth negotiations are expected to be reached to allow Tesla to transfer data collected in China to the United States.

This is because, for training the algorithms necessary for autonomous driving, it is essential to be able to transfer various data obtained during driving, including geographic and terrain information collected in China, to the United States.

This is a significant achievement for Elon Musk (Tesla CEO, hereinafter referred to as Musk), who has been striving to obtain approval from the Chinese authorities for data transfer.

■ Will Chinese Customers Be Able to Use FSD?

It has been revealed that Musk visited China on the 28th in his private jet and met with Premier Li Qiang for discussions.

Musk had canceled a meeting with the Indian Prime Minister about a week prior.

Even though the Indian market is rapidly emerging, it is analyzed that the commercialization of FSD in China was more urgent for Musk.

However, it is reported that preparations for a visit to India for the Indian market are underway.

The fact that the announcement of the Tesla Model Y and Model 3 passing the inspection was made on the same day that Musk met with China's Premier Li Qiang is interpreted as a sign that some sort of agreement has been reached.

It is believed that discussions regarding Tesla's expanded investment in China have also taken place in exchange for China easing restrictions on Tesla within the country.

Until now, Tesla has been unable to transfer data collected in China to the US since 2021 due to regulations imposed by the Chinese authorities.

■ Tesla's Restrictions Lifted in China? Expectations for Improved Performance and Increased Investment

If Tesla's operational restrictions within China are lifted and FSD is commercialized, it is anticipated that the company's current poor performance will recover quickly.

The fact that usage restrictions are being lifted in various parts of China, including Shanghai, is evidence of this.

An industry insider also mentioned that since Tesla has passed China's authoritative standards related to vehicle data safety, it will be easier to lift operating restrictions on Tesla in highways, public institutions, and airports.

The four requirements set by the Chinese authorities in this inspection are: notification of personal information processing, in-vehicle processing of driver's seat data, non-collection of driver's seat data, and anonymization of facial information outside the vehicle.

■ Premier Li Qiang Promises a 'Better Environment'

During this meeting, Premier Li Qiang stated that "China's vast market has always been open to foreign companies." He also conveyed a confident message, saying, "What China says, it does."

He also mentioned that "China will ensure a good environment for foreign companies to invest in China with peace of mind."

In response, Musk stated that the Tesla Gigafactory Shanghai is one of the most successful Tesla factories and that he is willing to work with China to achieve even greater success.

Since entering the Chinese market, Tesla has sold over 1.7 million vehicles within China, and the Shanghai factory is known to be the largest of Tesla's factories in China.

⁠⁠⁠⁠⁠⁠⁠

Related articles -

This article simply provides information on Tesla's commercialization of Full Self-Driving in China.

This article may contain affiliate links or sponsors, and a certain level of commission may be generated through partner activities.