Battle for the streets: Tesla’s self-driving tech challenges China’s home-grown heroes

Ni Tao is IE’s bi-weekly columnist, giving exclusive insight into China’s technology and engineering ecosystem. His Inside China column explores the issues that shape discussions and understanding about Chinese innovation, providing fresh perspectives not found elsewhere.of Tesla ’s Full Self-Driving technology into China has got the country’s automobile industry buzzing with speculation about what’s in store for it.

In this sense, Tesla’s FSD does pose a significant threat. But does that signal a looming demise of these domestic players? The reality is more complex than meets the eye.China’s autonomous driving landscape consists of two types of players. One group, which includes EV makers like Xpeng and Li Auto and DeepRoute.ai, a tech startup, adopts a technical approach similar to Tesla’s E2E.

Huawei bets big on multi-sensor fusion perception because it believes that camera, millimeter-wave radar, and lidar have their shortcomings, making integration necessary.The arrival of Tesla’s FSD has elicited mixed reactions. Some see it as a threat, while others welcome it enthusiastically. Companies like Xpeng and DeepRoute.ai, which embrace the same E2E approach, stand to benefit. It’s no wonder Xpeng’s founder and CEO, He Xiaopeng, openly welcomed Tesla’s arrival.

In fact, these technologies may converge as lidar and other sensors become more mature and cost-effective, potentially leading Elon Musk to reconsider his previous dismissal of lidar as a “fool’s errand.”Several facts support my argument. Although Tesla is a strong E2E player, domestic manufacturers like Xpeng and DeepRoute.ai didn’t just jump on the E2E bandwagon. With years of experience behind them in this field, their performance may not necessarily be inferior to Tesla’s FSD.

On the other hand, Tesla itself faces significant hurdles. Musk has lobbied painstakingly to get FSD licensed in China. For FSD to thrive, however, two core issues must be resolved: obtaining geographic data on public roads and ensuring data security compliance.The first one is easier to fix. Chinese laws require overseas carmakers to work with certified Chinese companies to acquire a mapping license for developing autonomous driving technologies.

, suggest Tesla plans to establish a data center in China to process and train autonomous driving algorithms locally. Which brings me back to what I said earlier. In the short term, Tesla’s FSD is unlikely to crush domestic opponents due to insufficient computing power.

FSD Tesla

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