Elon Musk proposed to launch Tesla robotaxi in China, says report

Tesla is planning to test its advanced driver-assistance package in China with the introduction of its robotaxi in the country. Tesla CEO Elon Musk has reportedly made the proposal during his recent visit to China after he delayed his India visit. Musk's proposal to launch robotaxi in China was received positively by authorities, according to Reuters that quoted Chinese media reports. In April, Tesla had announced that it will unveil the robotaxi on August 8 this year as the US-based EV maker is tackling weak sales and tough competition from Chinese EVs.

According to reports, Chinese officials responded to Tesla's offer by saying that the country 'welcomes Tesla to do some robotaxi tests in the country'. The officials were also quoted saying that they hope Tesla can ‘set a good example’. However, the challenge for Tesla would be to get approval for its Full Self-Driving (FSD) features to seek data that Tesla cars need. China has been against foreign carmakers collecting data of Chinese customers and has not yet approved the use of FSD.

The approval to use FSD will be key to Tesla's plans to launch robotaxi in China. Musk met Chinese Premier Li Qiang when he visited Beijing last month. According to reports, Tesla seeks to test the robotaxi in Shanghai where the EV maker's largest Gigafactory outside United States is located. China is also the second largest market for Tesla outside its home base.

Robotaxi is expected to be Tesla's own fleet of self-driving cabs which will enable its customers with the choice to own one or use it as part of the cab fleet simultaneously. “Tesla will be some combination of Airbnb and Uber. At any time, they can have the car come back to them, like Airbnb for cars. They can decide if they want to only let the car be used by friends and family, or only by five-star users or by anyone," said Musk, while speaking about Tesla's robotaxi project during an announcement on April 23. In theory, Tesla plans to use robotaxi as a mode to earn money for customers even when they are not using it.

The robotaxi project could be a game-changer for Tesla as most other self-driving electric taxi projects have failed to take off. The robotaxi proposes an EV which will not have a steering wheel or pedals, but will operate through Tesla's advanced FSD. Tesla's robotaxi ambition has deferred the project to launch a more affordable Model 2 electric car earlier. However, the project cost of the robotaxi is expected to be much higher. Question remains, if Tesla will be able to launch the robotaxi without compromising its funds.

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