Tesla is collaborating with Chinese technology giant Baidu to improve the performance of its advanced driving assistance system in China.
The move follows criticism from customers regarding a recent software update.
Baidu has dispatched engineers from its mapping division to Tesla’s Beijing office. Their objective is to integrate Baidu’s navigation data, including lane markings and traffic light signals, into Tesla’s Full Self-Driving Version 13 software.
This collaboration aims to enhance FSD’s understanding of Chinese roads with more accurate mapping data.
The partnership reflects Tesla’s efforts to navigate China’s stringent data laws, which have prevented the automaker from using local driving data to train its AI systems. Unlike in the United States, where Tesla can refine FSD using real-world data, China requires that such information be stored locally and restricts its transfer abroad.
This has put Tesla at a disadvantage against competitors like BYD and Xpeng, which offer similar driving assistance systems without additional fees.
The February rollout of Tesla’s latest FSD update in China drew mixed reactions, with some users reporting frequent traffic violations, such as incorrect lane changes and red-light running. The company has since been working to address these issues, and the partnership with Baidu is seen as a crucial step in that effort.
Baidu has been supplying Tesla with mapping data since 2020 and is one of China’s dominant navigation service providers. The partnership also benefits Baidu, which faces growing competition in AI development from rivals such as DeepSeek and ByteDance.
Tesla’s ability to maintain its market share in China is under pressure as sales decline in the U.S. and Europe. In 2024, the company’s share of China’s EV market fell from 11.7% to 10.4%, while local manufacturers gained ground. Tesla continues to charge a premium of 64,000 yuan ($8,834) for its FSD system, adding to the challenge of competing with lower-cost alternatives.
