After Musk hastily ended his visit to China, Tesla's stock price closed up more than 15% on Monday, with a market value surge of over $82 billion, marking the largest daily increase since March 2021. The performance of the market also reflects the substantial achievements of Musk's trip to China.
On the Tesla user app, the purchase page of the official FSD service in China is displayed as "about to be launched", while previously it was "to be launched later". The difference in one word indicates the subtle changes in the process of FSD's entry into China.
Tesla's fully autonomous driving (FSD) is an upgraded version of the assisted driving system Autopilot. Tesla launched FSD software four years ago and continuously upgraded it to the latest FSD V12 version. But this feature is not yet available in China, and Tesla has been seeking to provide FSD technology in China.
On Sunday, Tesla passed four data security compliance requirements in China, becoming the first foreign automaker to meet these requirements.
For a long time, data security issues have been a major obstacle to Tesla's comprehensive promotion of FSD software systems in China. Industry analysis believes that this is an important sign for Tesla to clear data security barriers.
Tesla reportedly reached an agreement with Baidu to use Baidu's map and navigation technology to implement Tesla's FSD function. According to a reporter from First Financial News, overseas car companies can only obtain map service licenses and legally operate autonomous driving functions through cooperation with local Chinese companies. This is also a requirement for the operation of intelligent driving systems on public roads in China.
Therefore, through cooperation with Baidu, Tesla will be allowed to legally operate FSD on Chinese roads, and Tesla's fleet will be able to collect data on traffic, road signs, and routes.
Market insiders believe that Tesla has made significant breakthroughs in introducing FSD technology to China, marking the company's entry into the "fast lane" in the fiercely competitive market environment in China and opening up new sources of revenue for this electric vehicle giant, whose sales are facing bottlenecks in China.
In recent years, local competitors such as BYD, NIO, and Xiaopeng have increased their competition with Tesla from technology to cost, and technology giant Huawei has also launched intelligent driving systems.
"The discussion about the possibility of launching FSD in China is exciting, and we welcome it with open arms," said He Xiaopeng, founder and CEO of Xiaopeng Motors, in a statement on LinkedIn
He also stated that Tesla, with its strong autonomous driving technology and brand influence, has helped the industry establish high standards. The introduction of such top-level products and technologies to China will drive the development of the entire industry and enrich user experience.
He Xiaopeng believes that Tesla's launch of FSD in China may exacerbate the decade long struggle for the dominant position of "smart electric vehicles". "I firmly believe that fully automated driving will be one of the key applications of intelligent electric vehicles, and the adoption of fully automated driving may be shortened by three years," he said.
He also stated that China's advanced ADAS is beginning to emerge in international markets outside of its home country, which is crucial for China's autonomous driving technology industry.
According to Zhou Guang, co-founder and CEO of Yuanrong Qixing, new models currently priced over $30000 in China require advanced driving assistance functions to compete.
However, most of the intelligent driving systems available in China are still L2 level assisted driving systems, which means they require drivers to be ready to take over at any time. Tesla's FSD, even though referred to as a "fully autonomous driving" feature, is still at L2 level and requires the driver's concentration. However, according to Musk's goal, he will ultimately develop FSD into L4 level autonomous driving, which means there is no need for driver intervention at all.
"Tesla's push for FSD to enter China will undoubtedly force other electric vehicle startups to accelerate their research and development speed," a senior executive from a domestic high-precision navigation system supplier told a reporter from First Financial. He believes that Tesla is expected to once again leverage the "catfish effect" in the field of autonomous driving, driving the entire supply chain and ecosystem of autonomous driving, as it did when it entered China to produce electric vehicles in 2018.
At last week's Beijing Auto Show, Chinese car manufacturers and suppliers also showcased the latest intelligent driving systems. For example, Huawei showcased remote information processing receiver components that can be used in conjunction with GPS systems and BeiDou satellite systems. Huawei also showcased LiDAR and optical sensors for advanced driving systems.
This also makes it possible for China's autonomous driving suppliers to compete on the same stage as top automotive technology suppliers such as Bosch and Continental. Bosch board member Markus Heyn welcomed this competition at the Beijing Auto Show, believing it would be beneficial for the market.