Investing.com-- Tesla Inc (NASDAQ:TSLA) CEO Elon Musk had proposed testing the capabilities of its full self-driving vehicles in China by launching them as robotaxis during his recent visit, Chinese newspaper China Daily reported citing sources.
The Chinese government also may have offered some support for Musk’s plan, the China Daily report said, with the newspaper citing individuals with knowledge of the matter.
Musk had reportedly won regulatory approval to roll out Tesla’s most advanced FSD software in China during a recent visit to the country. The China Daily report said that Musk had also proposed implementing FSD functions in China’s taxi services.
Recent media reports said that Tesla’s FSD roll out in China will be done through a tie-up with internet giant Baidu Inc (NASDAQ:BIDU). Tesla’s Chinese models already incorporate Baidu’s advanced navigation systems.
China is Tesla’s second-biggest market, with any advanced FSD capabilities giving the automaker at least a technological edge over its rivals in the country- with whom it has been embroiled in a bitter price war for the past two years.
FSD and robotaxis also represent a lifeline for Tesla, which clocked a severe sales decline in the first quarter amid sluggish EV demand and increased competition in China’s EV market.
Musk said that Tesla will reveal its robotaxi in August. The Tesla CEO has repeatedly flagged plans for such a product, although no reveals have been made to date.
Tesla’s FSD software has also drawn a string of lawsuits against the company over potential safety hazards from the software, which may not be as autonomous as the name suggests.