Elon Musk Visits Beijing to Discuss Tesla's Full Self-Driving Rollout and Data Transfer in China

Elon Musk, the CEO of Tesla, made an unannounced visit to Beijing, China on April 28, 2024 to meet with senior Chinese officials, including Premier Li Qiang. The purpose of Musk's visit was to discuss the rollout of Tesla's Full Self-Driving (FSD) software in China and to seek permission to transfer data collected by Tesla's vehicles in China abroad to train algorithms for its autonomous driving technologies.

During the meeting, Premier Li praised Tesla's development in China, stating that it could be regarded as a successful example of U.S.-China economic and trade cooperation. Musk expressed his positive sentiment about the progress of electric vehicles in China, noting that "all cars will be electric in the future." He also emphasized the strong performance of Tesla's Shanghai factory, attributing it to the "hard work and wisdom of the Chinese team."

Tesla has not yet made its FSD software available in China, its second-largest market, despite customer demand. The company has been required to store all data collected by its Chinese fleet in Shanghai since 2021 and has not transferred any of this data back to the United States. Musk is now seeking approval to transfer this data abroad to train algorithms for Tesla's autonomous driving technologies, which are seen as critical for the company's long-term valuation and success.

Why this matters: Musk's visit to China comes at a critical time for Tesla, as the company faces increasing competition from Chinese EV makers, slowing sales, and regulatory challenges related to its autonomous driving technologies. The outcome of Musk's discussions with Chinese officials could have significant implications for Tesla's future growth and the development of self-driving cars globally.

Musk's visit coincided with the ongoing Beijing Auto Show, where Tesla's rivals showcased their latest electric vehicles equipped with advanced driver-assistance systems. Although Tesla did not have a booth at the event, Musk met with Ren Hongbin, a government official who heads the China Council for the Promotion of International Trade, the organizer of the auto show.

The visit also follows Tesla's recent move to cut prices of its Shanghai-made vehicles to maintain its leading position in China's premium EV segment. However, the company has faced challenges, including a global slowdown in electric car sales and an intensifying price war led by Chinese brands, prompting Tesla to announce plans to lay off 10% of its global workforce.

Key Takeaways

• Elon Musk made an unannounced visit to China to discuss Tesla's FSD software rollout.
• Musk seeks approval to transfer data collected by Tesla's China fleet to train autonomous driving algorithms.
• Premier Li praised Tesla's success in China as a model of U.S.-China economic cooperation.
• Tesla faces competition from Chinese EV makers, slowing sales, and regulatory challenges on autonomous driving.
• Musk met with government officials during the Beijing Auto Show, where Tesla's rivals showcased advanced EVs.