Tesla Gains Regulatory Approval for Full Self Driving Software and meets Security Standards in China amidst Increased Cooperation with Li Qiang and Chinese Authorities

Barron’s senior writer Al Root discussed Tesla’s recent stock performance and the strategies adopted by rival automobile manufacturers as they shift towards electric vehicles. During this discussion, he highlighted that Elon Musk recently visited China to meet with Chinese Premier Li Qiang, an interaction that was not previously announced by Musk or his company. According to a report from Xinhua, Li expressed his desire for increased trade cooperation between the US and China during their meeting. This visit follows previous ones made by Musk in 2023 where he engaged with high-ranking Chinese officials such as Foreign Minister Wang Yi and visited Tesla’s Gigafactory Shanghai facility.
Tesla also received positive news regarding its electric vehicles being sold in China, the company confirmed that both Model 3 and Model Y cars have met data security standards required by local authorities on Sunday via the China Association of Automobile Manufacturers (CAAM). This announcement comes after Tesla produced over 1.77 million units of these two models throughout last year alone. The Wall Street Journal reported on Monday, citing anonymous sources that Chinese regulators had given approval for Tesla’s Full Self Driving software to be used in the country. Currently, this feature is not available to customers purchasing electric vehicles from Tesla in China as a regulatory barrier stands between them and FSD use within its markets’ bounds, while similar driving tech rivaling Elon Musk & co., like Baidu’s Apollo Pilot program for example has already entered mass market consumption here. As noted by FOX Business which asked for comments regarding the Wall Street Journal report from Tesla at press time; this move could put pressure on local automakers to step up their game in terms of autonomous driving tech, as they compete with a foreign brand that is now gaining regulatory approval and expanding its market share within China.
In recent years, Musk has been vocal about his company’s plans for the future stating that “the future isn’t just electric but also autonomous.” Tesla’s Full Self Driving software plays an integral role in these efforts towards autonomy as it offers a suite of advanced driver assistance features designed to provide more active guidance and assisted driving under your supervision, according to its website. The company has been working with Baidu on maps and navigation for the Chinese market specifically.
China remains one of Tesla’s biggest markets despite facing intense competition from domestic automakers like BYD Auto (which is backed by Warren Buffett’s Berkshire Hathaway), as well as newer EV brands that are popping up with impressive products, such as Nio and Xpeng. In November 2021, Musk also met Chinese President Xi Jinping at a reception held in San Francisco during the latter’s visit to North America.