In a move indicating positive economic ties between the US and China, Beijing is likely to grant Tesla a licence to test its self-driving software through a proposed robotaxi service.
This comes after the electric vehicle (EV) giant’s chief executive officer (CEO) Elon Musk’s recent discussions with top Chinese policymakers, as per a report by China Daily.
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| Tesla plans to launch driverless taxis in China -- Photo: Electrek.co |
Musk’s robotaxi service plan in China
Musk's plan to operate a robotaxi service in China is in line with Tesla's plans to test its full self-driving (FSD) system in the largest EV market globally.
Beijing’s approval indicates its commitment to enter into collaboration with US companies, according to the daily.
Tesla to conduct FSD system testing in Shanghai
As per sources aware of the development, Tesla intends to launch its robotaxi service and conduct FSD system testing in Shanghai, as reported by a news agency.
Robotaxis, also called driverless taxis, are a significant application of autonomous vehicle technology in urban settings.
China’s autonomous driving tech scenario
In China, companies such as Baidu's Apollo, Pony.ai, and WeRide have already got the go-ahead to test their autonomous driving tech.
The testing can be done in designated areas across cities such as Beijing, Guangzhou and Wuhan.
Even as this move shows the progress in Tesla’s autonomous driving plans, analysts say that testing FSD on robotaxis indicates that the technology is yet to receive full commercialisation approval from the Chinese authorities.
Musk’s Beijing visit
However, it offers Chinese Tesla buffs an opportunity to experience FSD, marking a promising start.
Elon Musk’s visit to Beijing on April 28 — when he met Chinese Premier Li Qiang — sparked speculation about wider approval for Tesla’s FSD software in China.
Tesla’s FSD software
Right now, Tesla offers its FSD software in the US at a price of $8,000 or through a subscription model at the rate of $99 per month.
Grace Tao, Tesla’s vice-president of external relations in China, stressed on the significance of autonomous driving in boosting the country’s EV sector.
She added that technologies like FSD will pave the way for innovative business models such as robotaxis.
Tesla can’t transfer FSD data to US
But a key concern is whether Tesla will be allowed to transfer data collected in China to the US for training its autonomous driving algorithms.
Analysts claim that without this capability, the value of the basic FSD features in Tesla cars operating in China would be limited.
China is Tesla’s second-largest market
China is Tesla’s second-largest market, with 603,664 unit sales in the previous year, just behind the US.
Tesla China team reshuffle
Amid a reported slowdown in domestic (China) sales, Tesla is shuffling its leadership team, with Tom Zhu returning to China.
Zhu, previously overseeing operations in China and instrumental in establishing Gigafactory 3 in Shanghai, was promoted in 2023 as senior vice-president at Tesla’s US headquarters.
Notwithstanding a recent fall in sales from its Shanghai factory, Tesla remains committed to its operations in China, with ongoing efforts to boost autonomous driving technology and expand its market presence.
E-Vroooom’s views
Tesla may have applied for a robotaxi licence in China after Elon Musk's Beijing visit, but FSD tech could take time to be perfected and gain wider adoption globally.
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