• 16.06.2024

    TOP AUTO NEWS

    Auto news from China

    Tesla CEO Musk’s Surprise Visit to China Sparks Speculation on FSD Launch in Chinese Market

    Apr 30, 2024

    Tesla CEO Musk visited China on the 28th without prior notice. Musk was originally scheduled to visit India last week to meet with Prime Minister Modi and announce Tesla’s plans in India. However, he canceled the visit at the last minute due to Tesla’s affairs. Reports suggest that Musk’s sudden appearance in Beijing coincided with the 18th Beijing International Automotive Exhibition, and this visit may be related to Tesla’s launch of fully autonomous driving software in China. The day before Musk’s visit to China, Mary Barra, Chairman and CEO of General Motors, also quietly appeared at the Beijing International Auto Show on the 26th without prior disclosure of her itinerary. Many foreign car executives such as BMW Group Chairman Zipse, Mercedes-Benz Group Chairman and CEO Källenius, and Volkswagen Group Management Board Chairman Obo Mu also appeared at the Beijing Auto Show, showing great anticipation and attention to the Chinese market. According to CCTV News, Musk’s visit to China was at the invitation of the China Council for the Promotion of International Trade, and he met with CCPIT Chairman Ren Hongbin to discuss future cooperation. According to Global Times citing the latest report from Reuters, Musk flew to Beijing on the 28th to push for the landing of FSD in China. The report described this as “an unexpected visit to China” for him.

    Tesla CEO Musk's Surprise Visit to China Sparks Speculation on FSD Launch in Chinese Market

    During an interview with China Daily, Musk praised the development of the Chinese electric vehicle industry. He expressed happiness at the progress and stated that all cars in the future will be electric. Tesla has sold over 1.7 million cars since entering the Chinese market a decade ago. Despite fierce competition from local companies like BYD, Tesla is facing challenges. In response, Tesla has lowered prices and hopes to achieve stable high-profit income through its FSD. The FSD project has completed the Beta testing phase and is currently being promoted in the North American market in the form of FSD Supervised. Musk’s social media posts suggest that Tesla may soon offer FSD features to Chinese customers. To support the promotion of FSD, Tesla enhanced its AI training capabilities in the first quarter. According to Dan Ives, Managing Director and Senior Stock Analyst at Wedbush Securities, Musk’s visit to China is a “watershed moment” for Tesla. He believes Tesla’s “long-term valuation story” depends on the success of FSD and autonomous driving technology, with “Tesla offering FSD in China” being a key part of this challenge. It is reported that in order to meet the requirements of global regulatory agencies, Tesla’s FSD testing mileage needs to reach 6 billion miles. As of April 6, its FSD testing mileage has reached 1 billion miles. On April 28, the China Association of Automobile Manufacturers and the National Computer Network Emergency Response Coordination Center released a report on the testing of 4 security requirements for car data processing, showing that all models produced at Tesla’s Shanghai Gigafactory comply with regulatory requirements. Global automotive executives flock to China, eager to cooperate with Chinese companies. The recent Beijing Auto Show attracted participation from BMW, Mercedes-Benz, Audi, Volkswagen, Nissan, Toyota, Volvo, and many other well-known automakers. Industry executives stated that foreign automakers are actively seeking to establish new partnerships with Chinese partners. The Senior Vice President of Global Sales at HexaTech stated that compared to last year, European automakers have sent “more senior management teams” to visit their booth. “They are looking for a partner to narrow the gap, they come here with plans and missions.” The most active are European and Japanese automakers. Toyota announced collaboration with Tencent in artificial intelligence and big data. German automakers Volkswagen and Mercedes-Benz promised to increase investment in China. Volkswagen invested $700 million in Chinese electric car manufacturer Xiaopeng Motors last year, and this year at the auto show, they ambitiously stated that by 2030, they will become the best company in China. A Renault executive from France stated last Friday that they have had “key discussions” with NIO and Xiaomi to explore electric vehicle and smart vehicle technology.

    Tesla CEO Musk's Surprise Visit to China Sparks Speculation on FSD Launch in Chinese Market

    Nissan partners with Chinese tech company Baidu for AI and smart car research. Toyota collaborates with Tencent for technology in Chinese-made vehicles. Hyundai and Kia sign strategic cooperation memorandum with Baidu for collaboration in various fields. Beijing auto show sees increased foreign attendance with overseas dealers, suppliers, media, and owners present. Global automotive industry shifting with technological revolution, China emerging as a significant force. By 2030, intelligent connected car sales in five countries to account for over two-thirds of global sales, China leading the market followed by the US, India, Japan, and Germany.