Elon Musk, Tesla’s CEO, has been trying to persuade Chinese regulators to allow the company to offer self-driving capabilities in its largest market. After several false starts, Mr. Musk is now closer to achieving his goal.
Tesla announced that some drivers in China can use its Autopilot feature on city streets to help with lane changes and other tasks. The update requires driver supervision and costs an additional $8,800 for Tesla owners. This development marks a breakthrough for Mr. Musk and is a crucial step towards offering full self-driving capabilities in China.
Mr. Musk believes autonomous driving technology is essential for Tesla’s future. However, the company has faced challenges in China due to slow approval from regulators. In 2022, Mr. Musk traveled to Beijing to meet with China’s No. 2 official and received approval for his data security precautions on some models.
The approval would help Tesla maintain its market lead in China’s competitive electric vehicle market. “This will give Tesla three to five more years of technology leadership,” said Michael Dunne, an auto consultant and former General Motors executive.
Tesla faces stiff competition from local rivals like BYD, which recently announced an assisted-driving system using artificial intelligence. The company is working to persuade regulators to roll out full self-driving approval, but it’s hindered by Chinese regulations that prevent data export for training models.
The approval marks a significant step towards Tesla’s goal and will help the company adapt to China’s unique driving conditions. “The key is whether Tesla can localize its computing power in China,” said Cui Dongshu, secretary general of the China Passenger Car Association.
Source: https://www.nytimes.com/2025/02/25/business/china-tesla-self-driving-musk.html