Tesla Denies Secret FSD Deal with Baidu Amid Growing Confusion

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is an editor at RegTech Times, covering financial crimes, sanctions, and regulatory developments. She specializes in RegTech advancements, compliance challenges, and financial enforcement actions.

Tesla, the well-known electric car maker, is working with Chinese tech giant Baidu. However, there is confusion about what this partnership actually means. Some reports have suggested that Tesla is joining forces with Baidu to improve its Full Self-Driving (FSD) system in China. But Tesla has firmly denied this, saying that they are only working together on map navigation.

Baidu has a team of experts in digital mapping, which helps create highly detailed maps of roads, traffic signals, and lane markings. Tesla is using Baidu’s mapping technology to improve its navigation system for drivers in China. However, this does not mean that Baidu is helping Tesla develop its self-driving technology. Tesla has made it clear that this collaboration is strictly about maps and not about improving FSD.

China has strict rules on data collection, which makes it difficult for foreign companies like Tesla to gather detailed road information. Baidu’s mapping data can help Tesla navigate these challenges. This is important because Tesla’s cars rely on accurate maps to assist drivers on the road. However, Tesla’s denial of an FSD partnership means that its self-driving system remains separate from Baidu’s involvement.

Chinese Customers Unhappy with Tesla’s Latest FSD Update

Tesla recently released an update to its Full Self-Driving (FSD) system, but some customers in China are not happy. Many expected big improvements in how Tesla’s self-driving feature would handle Chinese roads. However, users claim the update has not lived up to expectations.

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Driving in China is different from driving in other countries. Roads can be crowded, traffic rules are complex, and navigation requires high precision. Some customers feel Tesla’s latest update did not address these unique challenges well enough. They expected the system to be smoother, smarter, and better at understanding Chinese traffic patterns.

This has put Tesla under pressure because the company is competing with local car brands like BYD and Xpeng. These Chinese automakers are working hard to improve their own assisted driving technology. If Tesla’s system does not meet customer expectations, it could lose ground to its rivals.

Despite the disappointment, Tesla continues to improve its technology. The company recently updated its Navigate on Autopilot system, which helps cars follow routes on highways. This update included some features from its FSD system, such as autopilot for city roads. However, Tesla has not yet officially launched its full self-driving technology in China.

Tesla Ensures Compliance with China’s Data Rules

Tesla has faced many challenges in bringing its Full Self-Driving system to China, mainly due to strict data security rules. In China, companies must follow strict guidelines when collecting and storing map and driving data. Foreign companies, including Tesla, cannot collect certain types of location data without special approval.

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To comply with these rules, Tesla has taken several steps. In 2020, the company announced that it would use Baidu Maps as its navigation service provider in China. This allowed Tesla cars to rely on Baidu’s local mapping data instead of collecting their own. Then, in 2021, Tesla set up a data center in Shanghai. This move ensured that all data collected by Tesla cars in China would stay in the country, following local regulations.

The Chinese government closely monitors companies that handle sensitive data, and Tesla has worked hard to stay compliant. According to a report from the China Association of Automobile Manufacturers and the National Internet Emergency Center, Tesla was the only foreign automaker to meet China’s strict data security requirements last year.

Tesla’s recent update to its Navigate on Autopilot system marked the first step toward introducing FSD in China. However, the company has not announced a full rollout yet. With competition heating up and Chinese customers expecting more from Tesla’s technology, the company faces increasing pressure to refine its self-driving features while staying within local regulations.

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