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On Thu, 13 Mar, 4:05 PM UTC
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[1]
Tesla working with Baidu to improve assisted driving system in China - sources
SHANGHAI/BEIJING, March 13 (Reuters) - Tesla (TSLA.O), opens new tab is working with Chinese tech giant Baidu (9888.HK), opens new tab to improve the performance of its advanced driving assistance (ADAS) system in China, two people with knowledge of the matter said, after a recent update drew customer criticism. Baidu dispatched a group of engineers from its mapping team to Tesla's Beijing office in recent weeks to work on better integrating Baidu's navigation map information, such as lane marking and traffic light signals, with Tesla's Full Self-Driving (FSD) Version 13 software, the sources said. The sources did not say how many engineers were sent to Tesla or whether they were still there. They said the aim was to improve FSD V13's knowledge of Chinese roads with more accurate and updated mapping information. The sources declined to be named because they were not authorised to speak to the media. They did not disclose a financial value to the collaboration. The deepening relationship with Baidu comes as Tesla navigates data and regulatory restrictions imposed by Beijing and Washington, which have made it tricky for the carmaker to bring full Autopilot and FSD systems to its second largest market. In the United States, Tesla's FSD system does not require navigation maps to be accurate or up-to-date, because local training of the AI helps the technology drive better. But in China, Tesla has been unable to train the system with data from its 2 million EVs because of the country's data laws and the company is under increasing pressure from rivals such as BYD and Xpeng, which offer cheaper vehicles and do not charge an additional fee for similar software. A deepened partnership with Tesla could also boost Baidu whose other initiatives, including AI, are lagging rivals such as DeepSeek and ByteDance. Tesla, which is aiming for the full rollout of FSD this year, did not respond to a request for comment. Baidu also did not respond to a request for comment. The partnership follows a long-waited but controversial software update Tesla sent to Chinese owners in February. The update added urban navigation features to the system but customers complained it fell short of Chief Executive Elon Musk's promise of a full FSD rollout in China. FSD is a suite of driving-assistance technologies developed with generative artificial intelligence to cope with more complicated traffic conditions. FSD V13 had not received sufficient training for it to adapt well to Chinese roads, one of the sources said, leading to drivers committing frequent traffic violations such as changing to the wrong lane and driving through red lights if they failed to notice and respond. Tesla has been unable to transfer data collected from Chinese streets to the United States to train the driving system because data laws require the company to store the data locally and seek approval for outbound transfers. The U.S. also does not allow Tesla to train its AI software in China. In an earnings call in January, Musk described the situation as a "quandary". Baidu has supplied navigation maps to Tesla since 2020 and is one of China's dominant map providers. Tesla is eager to defend its market share in China as sales plunge in the United States and Europe and local rivals push sales more aggressively. Tesla's share of China's EV market fell for the first time last year, to 10.4% from 11.7% in 2023, data showed. The automaker charges a 64,000 yuan ($8,834.04) fee for its assisted driving system on top of EVs priced from $32,500. ($1 = 7.2447 Chinese yuan renminbi) Reporting by Zhang Yan, Che Pan and Brenda Goh; Editing by Kate Mayberry Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Autos & TransportationADAS, AV & SafetySoftware-Defined VehicleSustainable & EV Supply ChainEV Strategy
[2]
Tesla working with Baidu to improve assisted driving system in China, sources say
* Baidu engineers work with Tesla in Beijing to improve FSD navigation map - sources * Tesla delivered FSD V13 in China without sufficient local data training - source * Some Chinese customers said update fell short of Musk's promises on FSD SHANGHAI/BEIJING, March 13 (Reuters) - Tesla is working with Chinese tech giant Baidu to improve the performance of its advanced driving assistance (ADAS) system in China, two people with knowledge of the matter said, after a recent update drew customer criticism. Baidu dispatched a group of engineers from its mapping team to Tesla's Beijing office in recent weeks to work on better integrating Baidu's navigation map information, such as lane marking and traffic light signals, with Tesla's Full Self-Driving (FSD) Version 13 software, the sources said. The sources did not say how many engineers were sent to Tesla or whether they were still there. They said the aim was to improve FSD V13's knowledge of Chinese roads with more accurate and updated mapping information. The sources declined to be named because they were not authorised to speak to the media. They did not disclose a financial value to the collaboration. The deepening relationship with Baidu comes as Tesla navigates data and regulatory restrictions imposed by Beijing and Washington, which have made it tricky for the carmaker to bring full Autopilot and FSD systems to its second largest market. U.S.-listed shares of Baidu were up about 2%, while Tesla's stock, which gained about 12% in the last two sessions, was down nearly 1% in premarket trading. In the United States, Tesla's FSD system does not require navigation maps to be accurate or up-to-date, because local training of the AI helps the technology drive better. But in China, Tesla has been unable to train the system with data from its 2 million EVs because of the country's data laws and the company is under increasing pressure from rivals such as BYD and Xpeng, which offer cheaper vehicles and do not charge an additional fee for similar software. A deepened partnership with Tesla could also boost Baidu whose other initiatives, including AI, are lagging rivals such as DeepSeek and ByteDance. Tesla, which is aiming for the full rollout of FSD this year, did not respond to a request for comment. Baidu also did not respond to a request for comment. The partnership follows a long-awaited but controversial software update Tesla sent to Chinese owners in February. The update added urban navigation features to the system but customers complained it fell short of Chief Executive Elon Musk's promise of a full FSD rollout in China. FSD is a suite of driving-assistance technologies developed with generative artificial intelligence to cope with more complicated traffic conditions. FSD V13 had not received sufficient training for it to adapt well to Chinese roads, one of the sources said, leading to drivers committing frequent traffic violations such as changing to the wrong lane and driving through red lights if they failed to notice and respond. Tesla has been unable to transfer data collected from Chinese streets to the United States to train the driving system because data laws require the company to store the data locally and seek approval for outbound transfers. The U.S. also does not allow Tesla to train its AI software in China. In an earnings call in January, Musk described the situation as a "quandary". Baidu has supplied navigation maps to Tesla since 2020 and is one of China's dominant map providers. Tesla is eager to defend its market share in China as sales plunge in the United States and Europe and local rivals push sales more aggressively. Tesla's share of China's EV market fell for the first time last year, to 10.4% from 11.7% in 2023, data showed. The automaker charges a 64,000 yuan ($8,834.04) fee for its assisted driving system on top of EVs priced from $32,500. ($1 = 7.2447 Chinese yuan renminbi) (Reporting by Zhang Yan, Che Pan and Brenda Goh; Editing by Kate Mayberry and Shreya Biswas)
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Tesla is collaborating with Chinese tech giant Baidu to improve its Full Self-Driving (FSD) system's performance in China, addressing recent customer criticisms and navigating complex regulatory landscapes.
Tesla, the electric vehicle giant, is working closely with Chinese tech company Baidu to enhance the performance of its Full Self-Driving (FSD) system in China. This collaboration comes in response to recent customer criticisms following a software update and aims to address the unique challenges Tesla faces in its second-largest market 1.
Baidu, a dominant map provider in China, has dispatched a team of engineers from its mapping division to Tesla's Beijing office. Their primary objective is to improve the integration of Baidu's navigation map information, including lane markings and traffic light signals, with Tesla's FSD Version 13 software. This effort is crucial for enhancing FSD V13's understanding of Chinese roads through more accurate and up-to-date mapping data 1.
Tesla faces significant hurdles in China due to data and regulatory restrictions imposed by both Beijing and Washington. Unlike in the United States, where Tesla's FSD system can improve through local AI training, the company is unable to utilize data from its 2 million EVs in China due to strict data laws. This limitation has led to FSD V13 not receiving sufficient training to adapt well to Chinese roads, resulting in issues such as frequent traffic violations 2.
Tesla is under increasing pressure from local rivals like BYD and Xpeng, which offer more affordable vehicles without additional charges for similar software. The company's market share in China's EV market declined for the first time last year, dropping to 10.4% from 11.7% in 2023. This partnership with Baidu is seen as a strategic move to defend Tesla's position in the competitive Chinese market 1.
The collaboration follows a controversial software update Tesla released to Chinese owners in February. While the update added urban navigation features, many customers complained that it fell short of CEO Elon Musk's promise of a full FSD rollout in China. Tesla aims for a complete FSD rollout this year, charging a premium of 64,000 yuan ($8,834) for its assisted driving system on top of EV prices starting from $32,500 2.
As Tesla navigates these challenges, the partnership with Baidu represents a significant step towards adapting its advanced driving assistance systems to the unique requirements of the Chinese market, potentially setting a precedent for future collaborations between global tech giants and local industry leaders.
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