Tesla secures a key partner in the Chinese market as it strives to launch Full Self-Driving (FSD) technology in the world’s largest auto industry.
It is undeniable that the FSD is among the most significant segment of Tesla’s business. It is a major appeal for potential customers and a profit-generating prospect. It will also serve as the company’s current and long-term differentiator.
Tesla gains Shanghai Municipal Commission of Economy and Informatization’s support
Tesla aims to launch the FSD technology in many markets as possible. Now, the automaker will soon achieve its goal with the Shanghai Municipal Commission of Economy and Informatization’s (SMCEI) endorsement.
The Global Times reported that the SMCEI released a public commitment to support Tesla’s autonomous driving, robots, and other ventures in Shanghai.
“#Shanghai will further deepen cooperation with #Tesla, pushing its layout on #autonomous driving, #robots and other business sectors in the city, said an official from the Shanghai Municipal Commission of Economy and Informatization.”
Global Times
CnEVPost further reported that the announcement also occurred in Tesla Giga Shanghai’s televised tour on May 12. However, it is interesting that the segment did not explicitly mention Tesla’s FSD, even though it cited autonomous driving tech multiple times, as noted by the report.
The SMCEI statement was unclear, much like earlier predictions that Tesla FSD might arrive in China. Nonetheless, it indicated that FSD would expand to the Chinese market. More importantly, though, is the fact that this declaration comes in the wake of several other Chinese reports, which suggest that FSD will arrive in the country sooner rather than later.
In particular, Caixin stated earlier this year that Tesla would start testing FSD in Shanghai and collaborate with local authorities to deliver the technology. However, it must be noted that this report was also not confirmed by Tesla China or local officials.
Apart from these local reports, Tesla’s recent actions also implied a newly formed partnership with local officials to launch the FSD. CEO Elon Musk recently fled to Shanghai to attend a meeting with local officials and the newly promoted Tesla exec Tom Zhu.
See Also:
- California bans Tesla from marketing its EVs as ‘Full Self-Driving’
- Tesla Full Self-Driving Beta is now released to North American owners
- Elon Musk slows down the rollout of Tesla’s next ‘Full Self-Driving Beta’ update
- Elon Musk said Tesla would be Full Self-Driving next year
- Tesla releases new Full Self-Driving Beta update
Unfortunately, barriers still stand in the way of China’s adoption of FSD. For instance, the Chinese government demands autonomous driving licenses, which are harder to obtain for foreign automakers.
Furthermore, the Chinese expansion of FSD may be more politically challenging than ever, given the recent crackdown on foreign (American) companies and contractors in China.
