Tesla has signed a deal with Baidu that will give the U.S. battery electric vehicle (BEV) maker access to the Chinese internet giant’s mapping and data services while clearing a major regulatory hurdle in the world’s largest vehicle market.
The deal follows Tesla major shareholder and CEO Elon Musk’s visit to China last week, where he met Chinese Premier Li Qiang.
The deal with Baidu paved the way for Tesla to launch its semi-autonomous driving technology in China.
Elon Musk’s successful trip to China helped boost the company’s flagging share price by a third to $194, valuing the company at $615 billion before paring some of the gains in recent days handed in again.
Tesla is looking to ramp up the rollout of its Full Self Driving (FSD) system in key markets including China as competition from Chinese automakers including BYD Auto continues to intensify.
Tesla vehicles have now been added to a list of 70 models tested for data security compliance in China by the China Association of Automobile Manufacturers, but have yet to officially receive compliance certification.
Connected, intelligent technology, including driver assistance systems, became a key ingredient in BEVs sold in China, while demand for fully autonomous vehicles from transportation companies such as taxi companies was expected to surge once the technology was proven and accepted.
Foreign car manufacturers in China had to source their mapping and navigation systems from one of around 20 approved local suppliers. All manufacturers of vehicles with self-driving technology were also required to store user data used to improve these systems in China.
Tesla’s Shanghai factory delivered 948,000 vehicles last year, accounting for more than half of the company’s global vehicle production, including 604,000 units for sale locally, accounting for 11% of the country’s domestic BEV market.
“Tesla signs mapping deal with Baidu in China” was originally created and published by Just Auto, a brand owned by GlobalData.
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