Tesla eyes China data for training its autonomous driving tech
What's the story
Tesla is reportedly planning to harness data from China to bolster the global development of its autonomous driving system, marking a shift in its data utilization approach.
The company is considering setting up a data center in China to train the algorithm required for more advanced autonomous vehicles.
Previously, Tesla's primary focus was on obtaining approval from Chinese regulators to export data generated by its EVs in China for its "Full Self Driving" (FSD) system.
Unclear path
Tesla's future plans: Local data center or data transfer?
It is yet to be determined whether Tesla will proceed with both the data transfer and a local data center, or if it is developing parallel plans as a contingency.
This decision comes at a time when Musk's company is rapidly shifting its focus toward AI breakthroughs amidst slowing EV demand and increasing competition.
The push to utilize more data from vehicles in China for AI development coincides with US government's increasing curbs on China.
Market limitations
Tesla's Full Self Driving system faces challenges in China
Currently, Tesla is unable to offer the full version of its FSD system, priced at nearly $9,000, in China.
A wider market for FSD in China could potentially enhance Tesla's revenue and profits, which are currently being challenged by Chinese competitors like BYD.
To establish a data center in China for FSD development would require collaboration with a Chinese partner.
There are also potential hardware-sourcing challenges that need to be addressed.
Strategic discussions
Musk's recent Beijing visit accelerates data utilization plans
Musk's campaign to leverage more data from China was expedited during his recent trip to Beijing, where he met with officials including Premier Li Qiang.
During these meetings, Musk sought permissions for Tesla's data transfer and discussed the potential of Tesla investing in a data center in China.
He also explored the possibility of Tesla licensing its FSD systems to Chinese EV makers.