Elon Musk is taking a risk by aiming to implement Tesla’s Full Self-Driving (FSD) technology in China. This information was released by China Daily, a state media publication in China. It comes after Musk surprised everyone by traveling there last month and meeting with Premier Li Qiang, the nation’s second-in-command.
For Tesla, this development comes at a critical juncture. The firm, which was experiencing slow sales, got a much-needed boost when Chinese authorities gave its clearance in principle for the FSD implementation. However, Musk’s ambition goes beyond automobiles. According to China Daily, which cites insiders, Chinese officials have also expressed some support for incorporating Tesla’s FSD technology into the extensive taxi network in their nation.
This calculated action is in complete harmony with Tesla’s recent transition to a future defined by software. Musk highlighted this shift in an April earnings call, saying, “We should be thought of as an AI or robotics company.” This software focus falls on August 8, a date picked particularly for its auspicious meaning in Chinese culture, which also happens to be the highly anticipated day of Tesla’s robotaxi presentation.
Yet, Tesla does appear to be focusing its operations. Just last week, Musk disclosed that he had disbanded the team responsible for the Supercharger network, signaling that they might slow down in expanding their infrastructure (the case). This new direction seems to prioritize the development of core software for autonomous driving systems while putting aside — at least temporarily — any efforts towards growing their physical infrastructure.
Although whether or not Tesla will succeed with its robotaxi plans in China is still uncertain, one thing stands out: Tesla is indeed going through a major transformation. It is heading towards a future where software and automation take precedence (over other considerations) and with China possibly emerging as a key player in this technological revolution. Backed by the Chinese government support and focusing more on software development than anything else— including developing technology for their robotaxis— we might soon see cruising down Chinese city streets which would lead us into an entirely different era due to how they are brought under urban transportation dynamics.