Those with knowledge of the work claim that Tesla (TSLA.O), opens new tab, is moving forward with plans to power the global development of its self-driving system using data from China that might be handled within the nation. This is a strategic change by Elon Musk.
As part of that endeavor, two persons who wished to remain anonymous due to the nature of the work being done in confidence, said that Tesla has been designing plans for a data center in China to train the algorithm required for more completely autonomous vehicles. It was unclear whether Tesla would move forward with data transfer and a local data center, the two alternatives it had chosen to handle self-driving data from China, or if it was creating backup plans in case something went wrong. The manufacturer is attempting to enhance its artificial intelligence for driving by utilizing more data from Chinese automobiles, a move that coincides with efforts by the US government to restrict the transfer of AI technology from American companies to Chinese ones.
The full version of FSD, which is priced at approximately $9,000, is not available from Tesla in China.
Expanding the FSD market in China would help the automaker’s earnings and sales at a time when both are under pressure from BYD and other Chinese competitors.