During a quick trip to Beijing that concluded on Monday, Elon Musk lobbied for China’s clearance for Tesla to roll out sophisticated driver-assistance systems, a move that might raise profits at a time when Chinese rivals are putting pressure on Tesla.

According to a person with knowledge of the situation, Tesla CEO Elon Musk came in the Chinese capital on Sunday and was scheduled to speak about the release of Full Self-Driving (FSD) software and authorization to send driving data abroad.

One of his meetings was with Chinese Premier Li Qiang, who hailed Tesla’s TSLA.O progress in China as an effective illustration of trade and economic cooperation between the United States and China. However, official media did not disclose whether or not the two had addressed FSD.

However, a significant endorsement for the American carmaker was received at the same time as his trip from a leading Chinese auto association, which stated that Tesla’s Model 3 and Model Y automobiles were among those that were determined to be consistent with China’s data security regulations.

Additionally, two different individuals informed Reuters that Tesla and Baidu had come to an arrangement for the latter to utilise the former’s mapping licence for data collecting on Chinese public roads. These sources characterised this as a crucial step towards the introduction of FSD in China.

The U.S. electric car manufacturer, which launched the most autonomous version of its Autopilot software four years ago, has not yet made FSD fully available in China, its second-largest market internationally, despite consumer demand. Among the reasons for this are data security and compliance.

Since 2021, Chinese authorities have mandated that Tesla retain all data gathered by its Chinese fleet in Shanghai; the business is unable to export any of this data back to the United States.

According to the source, Musk is trying to get permission to send data gathered domestically to another nation in order to train algorithms for its autonomous driving capabilities.

Musk’s trip to China, which was initially made public by Reuters, was not announced publicly, and the speaker only agreed to remain anonymous as they lacked the proper authorization to interact with the media.

According to the Chinese flight monitoring software Flight Manager, Musk’s aircraft took off from Beijing Capital Airport at 05:17 GMT and was bound for Anchorage, Alaska.

There were no comments available from Tesla on Musk’s departure.

It’s yet unknown what governmental permits Tesla would require in the future or what requirements it might have before launching FSD completely in China.

The unexpected visit was seen as “a major moment for Tesla” by Wedbush equity analysts.

rival By releasing comparable software, Chinese automakers and suppliers like Huawei Technologies (9868.HK) and XPeng (9868.HK) want to outperform Tesla.

On his Weibo account, Hu Xijin, a former editor of the state-backed tabloid Global Times and frequent supporter of China’s official line, stated that Tesla was the only foreign-funded carmaker to comply with China’s data compliance regulations. He further stated that this would open the door for Tesla vehicles to be driven into government buildings and state-owned companies throughout China.

“This is not only a breakthrough in China, but also a significant demonstration for the entire world in solving data security issues,” he said.

Less than a week had passed since Musk postponed his intended travel to India to meet with Prime Minister Narendra Modi, citing his “very heavy Tesla obligations”.

Musk had planned to use his postponed trip to India to announce $2–$3 billion in new investments, including a car plant, after India promised to decrease import duties on electric vehicles in exchange for a new policy.

Due to security concerns about cameras mounted on the vehicles, Tesla automobiles have been prohibited from entering Chinese military sites for a number of years. Important political gatherings, including the annual summer leadership summit of the ruling Communist Party in 2022, have also turned away its automobiles.

On his Weibo account, He Xiaopeng, the CEO of XPeng, a company whose XNGP Advanced Driver Assistance System is comparable to FSD, expressed his gratitude for Tesla’s introduction of its technology to China.

“Only when we have better products and technologies entering [China], can we provide a better experience to the market and customers and let the market develop in a healthy manner and at a faster pace,” he stated.

He spoke the famous words, “Let a hundred flowers bloom,” which were coined by Chairman Mao Zedong, the man who founded modern China.

The increased likelihood of FSD entering China coincides with growing doubts about the EV maker’s development trajectory, which has caused Tesla shares to lose about a third of their value since the beginning of the year.

Following the COVID-19 pandemic-related delays in manufacturing and delivery in 2020, Tesla revealed this week that its quarterly sales had decreased for the first time.

Last week, Musk said that Tesla will launch new, less expensive models utilising its current EV platforms and manufacturing lines. The company will also provide a new self-driving “robotaxi” as well. This month, he said on X that the robotaxi would be unveiled on August 8.

According to industry analysts, China’s complex traffic circumstances, which include a higher number of pedestrians and bicycles than in many other countries, offer more scenarios that are essential for training autonomous driving algorithms more quickly.

“If Musk is able to obtain approval from Beijing to transfer data collected in China abroad this would be a ‘game changer’ around the acceleration of training its algorithms for its autonomous technology globally,” Wedbush analyst Dan Ives said in a note.

Responding to a question on X earlier this month, Musk hinted that Tesla would “very soon” provide FSD to Chinese consumers.

During the brief visit to Beijing, Musk not only met Li but also the person in charge of the ongoing car exhibition in Beijing. On Monday, a Reuters witness claims that the chairman of the major Chinese battery supplier for Tesla, CATL Robin Zeng, also paid a visit to Musk’s hotel.

(Adapted from Business-Standard.com)