Topline
Tesla agreed to a deal with Chinese search giant Baidu for its mapping and navigation functions, according to several reports on Monday, as CEO Elon Musk met with senior Chinese government officials in a purported push to gain approval for its driver-assistance technology.
Key Facts
As part of the deal, Tesla will gain access to Baiduās mapping and navigation tech to power its driver assist feature it calls āFull-Self Driving,ā Bloomberg and Reuters reported, citing unnamed sources.
The deal will allow Tesla to tap into Baiduās mapping license, a requirement for carmakers to launch self-driving or driver-assist features for use on Chinaās public roads, the Reuters report added.
Foreign companies need to partner with local firms to access the license, which will allow Teslaās cars to gather essential data about traffic, road signs and routes.
Citing the China Association of Automobile Manufacturers, Bloomberg reported Teslaās cars have also cleared an important data security and privacy requirement in the country, which tests a vehicleās collection and handling of āsensitive personal information.ā
The two developments come amid Muskās visit to China, where he met several top officials to reportedly gain approval for launching Teslaās āFull Self Drivingā feature in the country, as the company faces stiff competition from local EV makers.
On Sunday, Musk said he was āhonored to meetā Chinese Premier Li Qiangāthe countryās senior-most leader after President Xi Jinping.
What To Watch For
It is unclear if the deal with Baidu will convince officials in China to allow Tesla to launch its so-called self-driving feature. Despite its name, the feature does not support fully autonomous driving and always requires a human driverās oversight. The technology has also come under major scrutiny in the U.S., after flaws in the system have been linked to a number of crashes, 13 of which were fatal. In China, concerns about Teslaās data collection practices have led to a ban on its vehicles from entering military sites, government agency compounds and state-owned company locations.
Tangent
According to Reuters, Robin Zeng, the chair of Chinese battery firm CATL was seen at Muskās hotel in Beijing on Monday. CATL is a key local supplier for Tesla.
Big Number
32.26%. That is how much Teslaās share price has dropped since the start 2024 as the company has faced a decline in sales and the botched launch of its newest product, the Cybertruck.
Further Reading
Tesla Clears Key China Assisted-Driving Hurdle With Baidu Deal (Bloomberg)
Baidu, Tesla agree on mapping deal for FSD in China, sources say (Reuters)