Elon Musk secures Baidu-Tesla deal on self-driving vehicles: report

Tesla CEO Elon Musk is reported to have clinched a key deal with Chinese car maker Baidu for collaboration in self-driving vehicles, clearing the way for incorporating advanced assisted driving technology in Tesla vehicles.

By partnering with Baidu, Tesla will be able to incorporate advanced assisted driving features, including mapping and navigation functions, which will allow the US automaker to deploy its autonomous driving services in China.

Beijing-based internet company provides the lane-level navigation and mapping technology and Baidu is one of about 20 approved suppliers of the key module for self-driving functions, say reports.

The development comes after Musk’s surprise announcement of his China plan – a move to revive the fortunes of Tesla, which is facing declining revenues at home and abroad.

But, unlike in India, Tesla cannot dictate terms in China. Musk had to seek help from Chinese prime minister and Chinese Communist Party Secretary Li Qiang for setting up its largest facility in Shanghai.

Obviously, the assisted driving technology also must have come at a price. Tesla which charges $8,000 for outright purchase of $99 per month for monthly subscription for the technology in the US, will have to pay the Chinese internet company for the technology module that requires constant supervision.

This will make Tesla dependent on Chinese technology. It will also have to satisfy data security and privacy requirement in China, according to the China Association of Automobile Manufacturers.

Tesla has an existing tie-up with Baidu for mapping and navigation technology in China, and the new partnership will address issues with advanced self-driving technologies.