Tesla is collaborating with Chinese tech giant Baidu to enhance its advanced driving assistance system in China following customer criticism of a recent update. Engineers from Baidu's mapping team were sent to Tesla's Beijing office to integrate Baidu's navigation map information into Tesla's Full Self-Driving (FSD) Version 13 software, focusing on lane markings and traffic signals.
The aim is to improve FSD V13's understanding of Chinese roads by utilizing accurate and updated mapping data. While the sources requested anonymity because they were not authorized to speak to the media, they did not disclose financial details of the collaboration.
This partnership is crucial for Tesla as it deals with data and regulatory limitations in both Beijing and Washington, impacting the introduction of full Autopilot and FSD systems in China. Unlike in the U.S., China's data laws prevent Tesla from training its AI system with data from its 2 million EVs.
A closer tie-up between Tesla and Baidu could benefit both companies, especially as Tesla aims to fully implement FSD this year. The recent update to Chinese Tesla owners disappointed some customers, falling short of Elon Musk's promised FSD rollout in China. The lack of training specific to Chinese roads led to drivers committing traffic violations.
In the U.S., Tesla can improve its AI through local data training, but in China, it faces regulatory challenges. Tesla's market share in China declined for the first time last year as local competitors like BYD and Xpeng gain momentum. Despite challenges, Tesla continues to offer its assisted driving system as an optional add-on to EV purchases, further cementing its presence in the Chinese market.
The partnership with Baidu underscores Tesla's commitment to addressing the unique challenges of the Chinese market while navigating regulatory complexities.