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Tesla Collaborates with Baidu to Improve Assisted Driving in China

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Tesla is working with Baidu, a Chinese tech giant, to enhance the performance of its advanced driving assistance system (ADAS) in China, according to two sources familiar with the matter. This collaboration follows criticism from customers over a recent update to Tesla’s Full Self-Driving (FSD) Version 13 software, which failed to meet expectations.

Baidu has sent a team of engineers from its mapping division to Tesla’s Beijing office to improve the integration of Baidu’s navigation maps with Tesla’s FSD V13. The goal is to refine the system’s understanding of Chinese roads, including lane markings and traffic light signals, making it more accurate and up-to-date. The exact number of engineers or the financial terms of the collaboration were not disclosed.

This partnership comes as Tesla faces challenges with data and regulatory restrictions imposed by both Beijing and Washington, hindering its ability to bring its full Autopilot and FSD systems to its second-largest market. Unlike in the U.S., where Tesla trains its AI with data from its own fleet, it cannot do so in China due to local data laws. This has led to increasing pressure from competitors like BYD and Xpeng, which offer similar technology without charging extra fees.

The updated software, released in February, aimed to add urban navigation features but faced backlash for not delivering the promised full FSD functionality in China. Tesla’s FSD V13 had not been sufficiently trained to navigate Chinese streets, causing drivers to encounter frequent traffic violations such as incorrect lane changes and running red lights.

The partnership with Baidu, a dominant map provider in China, aims to resolve these issues by improving the mapping capabilities and providing more accurate navigation data. Tesla has been relying on Baidu for mapping services since 2020.

This collaboration comes as Tesla’s market share in China declined for the first time last year, dropping from 11.7% to 10.4% in 2024, according to recent data. Meanwhile, local competitors have been pushing sales more aggressively. In the U.S. and Europe, Tesla has faced a slowdown in demand, putting further pressure on its performance in China.

Despite the regulatory challenges and competition, Tesla remains focused on rolling out full FSD technology in China this year. However, it remains unclear how soon the collaboration with Baidu will lead to a resolution of the system’s issues.

Explainer: What Autonomous Driving Features Are Available in China?

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China, the world’s largest auto market, is seeing significant advancements in autonomous driving features, with several companies introducing innovative technologies in their vehicles. Chinese electric vehicle (EV) maker BYD recently launched its proprietary advanced driver-assistance system, “God’s Eye,” in a range of models, signaling the start of a potential price war in a highly competitive market.

BYD’s Autonomous Driving Features:

BYD’s “God’s Eye” system is a three-tier platform based on computing power. The most affordable entry-level version, the C model, is available on vehicles priced between 69,800 yuan ($9,500) and 219,800 yuan, under the Dynasty and Ocean series. The system includes features such as:

  • Automatic highway ramp exit/entry
  • Lane keeping and cruise driving
  • Autonomous lane changes and obstacle avoidance
  • Autonomous emergency braking and self-parking upon exit
  • Remote parking

This version of the system uses 12 cameras, five-millimeter wave radars, and 12 ultrasonic radars. Higher-end variations of the system, God’s Eye A and B, are available on more premium models such as Denza and Yangwang brands, utilizing advanced computing and lidar to create 3D images of a vehicle’s surroundings, assisting in navigation around obstacles.

Tesla’s Full-Self Driving (FSD):

Tesla offers its full self-driving (FSD) software for subscription in China, though the features are limited compared to other markets. Tesla vehicles come with basic autopilot features, such as traffic-aware cruise control and in-lane autosteer.

  • Enhanced autopilot, priced at 32,000 yuan, includes auto lane change and auto parking.
  • FSD, priced at 64,000 yuan, will soon allow navigation on city streets and recognition of traffic lights and stop signs, with plans for a release later this year.

Huawei-backed AITO:

AITO, another key player in China’s EV space, equips its M7 model with two versions of Huawei’s advanced driving system. The base version includes navigation on highways, auto ramp entry/exit, and partial auto lane changes, priced at 249,800 yuan. The advanced version, priced at 289,800 yuan, includes lidar-powered features, such as city street navigation and automatic emergency braking for special-shaped obstacles.

AITO’s advanced driving software is also available for subscription on EVs from other brands, including Changan’s Avatr, for approximately $4,100.

Xpeng’s MONA Series:

Xpeng introduced its most affordable EV with advanced autonomous driving capabilities through its MONA sub-brand. The MONA M03 Max, priced from 155,800 yuan, includes a vision-only solution with lane-keeping control, adaptive cruise control, navigation on highways, and smart parking. The vehicle will also feature smart exit from parking spaces.

Xiaomi’s Autonomous Driving System:

Xiaomi has introduced its own smart driving system in the SU7 EVs, priced from 215,900 yuan. The lower-end version of the system includes auto parking and highway navigation. The higher-end version, equipped with lidar, enables additional features like urban navigation, collision avoidance, and special vehicle recognition, available in SU7 trims priced above 245,900 yuan.

China’s BYD Cuts Entry Price for Smart EVs, Sparking Potential Price War

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China’s electric vehicle giant, BYD, made waves on Monday by launching its advanced autonomous driving features on a wide range of models, with prices starting as low as $9,555. This aggressive move, which analysts predict will ignite a price war, significantly undercuts competitors like Tesla. BYD now offers its proprietary “God’s Eye” advanced driver-assistance system (ADAS) on models priced above 100,000 yuan ($13,688), with three models priced below 100,000 yuan, starting at just 69,800 yuan for the Seagull. These new models went on sale immediately following the event.

Previously, BYD only included these high-tech features in EVs priced from $30,000. In comparison, Tesla offers similar features in China on vehicles starting at $32,000. This shift marks a significant democratization of technology, as BYD aims to make smart driving accessible to a broader audience. “Technology does not need to be high-end, and they can fight a price war here,” said Yale Zhang, managing director at Automotive Foresight.

BYD’s move is likely a strategic response to sales plateauing, as the company reached 4 million units sold last year. Industry expert John Zeng from GlobalData believes that smart driving technology could elevate BYD’s sales and put pressure on competitors, especially brands like Xpeng, which may struggle to offer similarly priced EVs with comparable smart features.

The introduction of these affordable smart driving cars comes after a period of aggressive price cuts by BYD, which had already stirred a price war in China’s automotive market. Shares of BYD surged 16% after reports of the smart driving plans surfaced. The company’s founder, Wang Chuanfu, suggested that smart driving will become as essential as seatbelts and airbags, pushing China’s AI-driven auto industry forward. The integration of DeepSeek’s AI models into BYD’s Xuanji smart car platform adds an additional layer to its technological advancements.