Discussing FSD Rollout and Data Transfer
Tesla CEO Elon Musk made an unannounced trip to Beijing, where he met with Premier Li Qiang. The meeting focused on the rollout of Full Self-Driving (FSD) software in China and the possibility of transferring data overseas.
Musk and Li discussed Tesla's successful development in China, which serves as a positive example of US-China economic cooperation. Musk expressed his honor in meeting Li, acknowledging their long-standing relationship since the early days of Tesla's Shanghai factory.
The Shanghai factory, established in 2018, marks Tesla's first venture outside the United States. Despite customer demand, the rollout of FSD, the most advanced version of Tesla's autopilot software, has been delayed in China. However, Musk recently hinted at its imminent availability in the country.
Analysts view this visit as a significant moment for Tesla, as FSD's success hinges on its Chinese market penetration. Chinese rivals like Xpeng have already launched similar software, putting pressure on Tesla.
Another key topic of discussion was data transfer. Since 2021, Tesla has stored all Chinese fleet data in Shanghai, complying with local regulations. However, Musk seeks approval to transfer this data abroad for training autonomous driving algorithms.
Musk's visit, first reported by Reuters, was not publicly announced. Tesla and Chinese state media did not provide further details about the FSD and data discussions.
Meanwhile, Li visited the Beijing auto show, highlighting China's leading position in the smart new energy vehicle sector. He emphasized the need to maintain this advantage. Musk echoed this sentiment, expressing his belief in the future of electric vehicles in China.
A recent report by a Chinese auto association listed Tesla's Model Y and 3 among 76 car models compliant with China's data security requirements.
Despite its success in China, Tesla faces challenges. The company plans to lay off 10% of its global workforce due to declining sales and intensifying competition from Chinese EV brands.
Tesla's stock has lost significant value this year, reflecting concerns about its growth trajectory. The company's first quarterly revenue decline since 2020 further fueled these concerns.