Reports say Tesla "partners" with Baidu to solve the issue of FSD being "unsuitable" in China
Reports indicate that Tesla's collaboration with Baidu primarily focuses on the optimization of the FSD Version 13 software. Baidu has dispatched a team of map engineers to Tesla's Beijing office, dedicated to more accurately integrating Baidu's navigation map information (such as lane markings and traffic signal data) into the FSD system
According to the latest report from Reuters, Tesla is engaging in deep cooperation with Baidu to leverage Baidu's leading mapping technology to address the challenges faced by its Full Self-Driving (FSD) technology in China.
The report states that the collaboration between Tesla and Baidu mainly focuses on optimizing the FSD Version 13 software. Baidu has dispatched a team of mapping engineers to Tesla's Beijing office, dedicated to integrating Baidu's navigation map information (such as lane markings and traffic signal data) more accurately into the FSD system. This initiative aims to enhance FSD's adaptability to China's complex road conditions through more accurate and real-time map data.
Although both parties have not disclosed specific financial details of the collaboration, this partnership is crucial for Tesla.
According to relevant Chinese regulations, Tesla cannot transmit the driving data collected in China overseas for model training, and the U.S. side restricts FSD training in China. This is one of the reasons for FSD's underperformance in China. Baidu's mapping technology provides Tesla with localized solutions, which is expected to address this shortcoming.
In addition to regulatory restrictions, Tesla is also facing increasingly fierce competition in the Chinese market.
Data shows that Tesla's market share in China's electric vehicle market has dropped from 11.7% in 2023 to 10.4% in 2024, marking the first decline in history. Meanwhile, local competitors such as BYD and XPeng have further squeezed Tesla's market space with more affordable prices and similar software features offered for free.
For Baidu, deep cooperation with Tesla is also of significant importance. Despite Baidu's substantial investment in artificial intelligence, its progress in emerging technologies such as generative AI has lagged behind competitors like DeepSeek and ByteDance. Through collaboration with Tesla, Baidu hopes to leverage its advantages in navigation mapping to enhance its competitiveness in the autonomous driving technology field.
Tesla plans to fully launch the FSD system this year, and the Chinese market is undoubtedly a strategic focus. Through cooperation with Baidu, Tesla aims to improve FSD's performance in China, thereby consolidating its market position. However, whether this collaboration can truly resolve the technical and competitive challenges Tesla faces in China remains to be seen.
Currently, the starting price for Tesla's electric vehicles sold in China is $32,500, while the additional cost for its driver assistance system is as high as 64,000 yuan (approximately $8,834). Whether this high price can be accepted by Chinese consumers will also directly impact FSD's market performance.
After the news broke, Baidu's U.S. stock rose about 2% in pre-market trading, while Tesla's stock remained stable.
