Tesla is making strategic moves to power the global development of its self-driving system with data from China, according to sources familiar with the company’s plans. The electric vehicle maker is reportedly working on establishing a data center in China to train the algorithm needed for more advanced autonomous vehicles.
Previously, Tesla had been focused on obtaining approval from Chinese regulators to transfer data generated by its EVs in China out of the country for its Full Self Driving (FSD) system. However, the company is now exploring the option of setting up a local data center in China to process the data within the country.
This shift in strategy comes as Tesla faces competition in the EV market and aims to accelerate the development of its AI technology for driving. The potential of a wider market for FSD in China could boost Tesla’s revenue and profits, especially as it faces pressure from Chinese rivals like BYD.
In a whirlwind trip to Beijing last month, Tesla CEO Elon Musk met with officials to discuss permissions for data transfer and the possibility of investing in a data center in China. Musk also explored the idea of licensing Tesla’s FSD systems to Chinese EV makers, signaling a new direction for the company in the world’s largest car market.
Analysts see Musk’s efforts in China as a significant step towards scaling up mass adoption of autonomous driving technologies. While fully autonomous cars may still be years away, Tesla’s focus on AI development in China could pave the way for future advancements in self-driving technology.