Strategic Partnership with Baidu
Tesla (NASDAQ:TSLA) is steadily moving ahead with its plan to roll out its self-driving technology in China, reaching an agreement with Baidu (NASDAQ:BIDU) to access the local search giant's mapping license for data collection on Chinese roads, Reuters reported.
Baidu (BIDU) is expected to also provide its lane-level navigation system to Tesla (TSLA), according to people familiar with the deal.
The agreement was a result of Tesla (TSLA) CEO Elon Musk's trip to China, where he met with Chinese Premier Li Qiang and other officials, just over a week after the billionaire cancelled his planned India trip citing “very heavy Tesla obligations.”
Tesla's Strategic Moves in the Chinese Market
In China, Musk also reportedly sought approvals for the launch of Tesla (TSLA) driver assistance system – Full Self Driving – in China and permissions to transfer local data abroad.
China requires that all driving assistance systems get a mapping service license before operating on public roads in the country. For this, foreign companies need to partner with any of the dozen local firms that are licensed, such as Baidu (BIDU).
This license would legally allow Tesla (TSLA) to operate its FSD software on Chinese roads, and gather data on road layouts and nearby buildings. It is not immediately clear if the collected data will belong to Tesla or Baidu (BIDU), the report noted.
Baidu (BIDU) and Tesla (TSLA) already have a partnership, under which the automaker's vehicles use the Chinese company's navigation map in China.
The introduction of FSD in China would be a significant step as competition among EV makers in the market continues to heat up. Musk recently said Tesla (TSLA) may bring FSD to China “very soon.”
Stock moves at 5.55 am EST: TSLA +7.6%; BIDU +5.8%.
