During a recent meeting between Elon Musk and Chinese Premier Li Keqiang, the details of their conversation were not disclosed to the public. However, footage released by China’s state broadcaster showed Premier Li praising Tesla as a successful example of Sino-American economic and trade cooperation. Mr. Musk is reportedly seeking permission to transfer driving data collected by Tesla in China to the US for processing, where the company keeps its most sensitive and cutting-edge technology for autonomous driving.
This potential transfer of data would allow Tesla to improve its autopilot driverless car software and potentially enable the full self-driving version for use in China. Currently, Chinese laws prohibit the transfer of domestic data out of the country and full self-driving autopilot has not been enabled in China. This hurdle needs to be overcome in order for Tesla to compete effectively in the Chinese market, where local rivals have already introduced their own competitor software.
Dan Ives, an analyst at Wedbush Securities, stated that obtaining approval from Beijing to transfer data collected in China abroad would be a game changer for Tesla. This trip by Musk is seen as a significant opportunity for Tesla to strengthen its presence in the Chinese EV market at a crucial time. China is Tesla’s second-largest market and facing stiff competition from local competitors, making it essential for the company to navigate regulatory challenges and enhance its operations in the region.