Tesla collaborates with Baidu to improve the performance of its driver assistance system in China -- sources

Reuters Shanghai/Beijing, March 13 - According to two informed sources, Tesla (TSLA.O) is collaborating with Chinese tech giant Baidu (9888.HK) to improve the performance of its Advanced Driver Assistance Systems (ADAS) in China. Tesla's previous upgrade had drawn criticism from some customers.

They stated that Baidu recently sent a team of engineers from its mapping division to work at Tesla's office in Beijing in order to better integrate Baidu's navigation map information with Tesla's Full Self-Driving (FSD) version 13 software.

The sources did not disclose how many engineers were sent to Tesla, nor did they reveal whether they are still working there. They mentioned that the goal of the collaboration is to enhance the understanding of FSD version 13 regarding Chinese roads by utilizing more accurate and updated map information.

The sources spoke on the condition of anonymity as they were not authorized to speak to the media. They did not disclose the financial details of the collaboration.

Tesla aims to fully launch FSD in China this year, and the company did not respond to requests for comment. Baidu also did not respond to requests for comment.

Baidu is one of the major map providers in China and has been supplying navigation maps to Tesla since 2020.

With significant declines in sales in the U.S. and Europe, and increased competition from local rivals in China, Tesla is eager to defend its market share in China.

Data shows that Tesla's market share in China's electric vehicle market fell for the first time last year, dropping from 11.7% in 2023 to 10.4%