Tesla clears key China assisted-driving hurdle with Baidu deal

Tesla Inc. is set to clear a key hurdle to introduce its advanced assisted driving features in China by partnering with Baidu Inc. in mapping and navigation functions, people familiar with the matter said.

The US automaker will then be able to deploy its autonomous driving services on the basis of lane-level navigation and mapping provided by the Beijing-based internet company, said the people, who asked not to be named discussing private information. Baidu is one of about only 20 qualified suppliers with the key module for self-driving functions.

The move comes after Tesla Chief Executive Office Elon Musk made an unannounced trip to China on Sunday, seeking approval for driver-assistance software that could help arrest the carmaker’s revenue decline. While the suite of features require constant supervision and don’t make Teslas autonomous, the company in the US charges $8,000 to buy FSD outright, or $99 a month for a subscription.

Musk met with Premier Li Qiang, who as the Chinese Communist Party secretary for Shanghai helped the company set up what is now its top plant globally.

In another boost, Tesla has also cleared a key data security and privacy requirement in China, according to the China Association of Automobile Manufacturers, which would help ease some of the concerns over Tesla’s data security issues.

Tesla switched to Baidu in 2020 for in-car mapping and navigation in China, and the new level of partnership aims to address mapping concerns for more advanced self-driving features. Representatives for Tesla and Baidu didn’t immediately respond to requests for comment.