Elon Musk visits China as Tesla pursues development of self-driving technology

SHANGHAI/BEIJING:

Tesla ( TSLA.O ) Chief Executive Elon Musk arrived in Beijing on Sunday on an unannounced visit, where he is expected to meet senior executives to discuss the development of Full Self-Driving software and permission to transfer data abroad, according to a knowledgeable person. of the subject.

Chinese state media reported that he met Premier Li Qiang in Beijing, during which Li told Musk that Tesla’s development in China could be seen as a successful example of US-China economic and trade cooperation.

The American electric vehicle maker released Full Self-Driving, or FSD, the most autonomous version of its Autopilot software, four years ago, but has yet to make it available in China, the world’s second-largest market, despite customers urge to do So.

Musk said this month that Tesla may make the FSD available to customers in China “very soon,” in response to a query on social media platform X.

Rival Chinese automakers such as Xpeng ( 9868.HK ​​) are seeking to gain an edge over Tesla by rolling out similar software.

Elon Musk’s private jet taxis down the runway at Beijing Airport April 28, 2024. PHOTO: REUTERS

Musk is looking to get approval to transfer data collected in the country abroad to train algorithms for self-driving technologies, the person said.

Tesla has since 2021 stored all data collected from its Chinese fleet in Shanghai as required by Chinese regulators and has not transferred any back to the United States.

Musk’s visit to China was first reported by Reuters, was not publicly identified and the person spoke on condition of anonymity because he was not authorized to speak to the media. Tesla did not immediately respond to a request for comment.

Chinese state broadcaster CCTV, in its report on Musk’s meeting with Li, did not say whether the two had discussed FSD or data.

Earlier in the day, a separate report aired by state radio said Li had visited the ongoing Beijing auto show and commented on how China’s smart new energy vehicle (NEV) sector had become a market leader and that the country had to work hard and maintain its advantages.

Also Read: Musk Delays India Trip

Musk also met with Ren Hongbin, a government official who heads the China Council for the Promotion of International Trade, the organizer of the Beijing auto show, state media reported.

“It’s good to see electric vehicles making progress in China. All cars will be electric in the future,” Musk said in a video posted on social media by a user linked to state media.

Musk’s trip comes just over a week after he canceled a planned visit to India to meet with Prime Minister Narendra Modi, citing Tesla’s “very heavy obligations.”

The company said this month it would lay off 10 percent of its global workforce as it faces falling sales and an intensifying price war for EVs led by Chinese brands.

US auto safety regulators said on Friday they had launched an investigation into whether Tesla’s US recall of more than 2 million vehicles announced in December to install new Autopilot safeguards was sufficient after a series of crashes.

Landed in Beijing

A private Gulfstream jet with tail number N272BG, which is registered to Falcon Landing, a company linked to SpaceX and Tesla, landed at Beijing Airport on Sunday at 06:03 GMT, according to Chinese flight tracking app Flight Manager.

The other aircraft registered at Falcon Landing is the N628TS, which is Musk’s primary jet that traveled to China on his last trip nearly a year ago, when he met with Chinese government officials in Beijing and visited the Tesla factory in Shanghai .

Tesla has sold more than 1.7 million cars in China since it entered the market a decade ago, and its factory in Shanghai is the largest in the world.

Musk’s visit coincides with the Beijing auto show, which opened last week and ends on May 4. Tesla does not have a booth at China’s biggest auto show and last attended in 2021.

GM ( GM.N ) Chief Executive Mary Barra made an unannounced visit to the trade show in the world’s biggest auto market on Friday, according to two people familiar with her schedule. GM did not immediately respond to a request for comment.

A staff member looks at Tesla’s new Model 3 sedan displayed next to the Model X SUV at the China International Trade Fair of Services (CIFTIS) in Beijing, China, September 2, 2023. PHOTO: REUTERS

Also on Friday, Grace Tao, Tesla’s vice president of external relations in China, posted a comment on the social media account of the state-run People’s Daily, arguing that self-driving technologies will be the new growth engine for the EV industry.

Tao said in the article that Tesla is leading the research and development of autonomous driving with its “end-to-end neural network” technology and data collected from millions of cars on the road.

China’s complex traffic conditions with more pedestrians and cyclists than many other markets provide more scenarios that are key to training self-driving algorithms at a faster pace, according to industry experts.

Musk said last week Tesla would introduce new, cheaper models using its current EV platforms and production lines and offer a new “robotaxis” with self-driving technology. He said in a post on X this month that he will unveil the robotaxi on August 8.

Tesla shares are down nearly a third since the start of the year as concerns have grown about the EV maker’s growth trajectory. Last week, Tesla reported its first drop in quarterly revenue since 2020 as the COVID-19 pandemic slowed production and deliveries.