Tesla's Full Self-Driving (FSD) technology is widely recognized as a leading intelligent driving system in the industry. Upon regulatory approval and implementation, it will greatly enhance the competitive strength of China's smart driving technology market, further consolidating its pioneering position in global applications. On May 20, 2024, XPeng Motors held a press event called "AI DAY" in Beijing, where they announced the rollout of a smart driving and intelligent cockpit system based on an end-to-end large model to customers, marking XPeng as the first enterprise in the Chinese market to officially launch an end-to-end large model application to customers.

Before the widespread adoption of end-to-end technology in intelligent driving, the implementation of intelligent driving was usually divided into three stages: perception, planning, and control, each requiring programmers to write code to establish rules, which is like programmers gradually guiding the intelligent driving system on how to drive. However, theoretically, end-to-end technology can achieve intelligent driving functions in a one-step approach, that is, receiving all data collected by sensors at one end, such as videos, photos, and radar information, and directly outputting the vehicle's control commands at the other end. Between the two ends is a large intelligent driving model built by learning human driving behavior to complete the driving task, which is akin to the intelligent driving system learning to drive itself through imitation.

The application of end-to-end technology has greatly enhanced the capabilities of intelligent driving, with all enterprises competing for leadership in the field of intelligent driving shifting to the end-to-end technology pathway to varying degrees. In addition to XPeng Motors, Xiaomi Auto also launched an intelligent parking system based on end-to-end technology; NIO announced that they would use end-to-end technology in the field of active safety; Li Auto proposed the concept of an end-to-end architecture at NVIDIA's GTC event in 2024; Huawei plans to launch its first vehicle equipped with the end-to-end ADS 3.0 intelligent driving system, the Aito S9, in June; Great Wall Motors Chairman Wei Jianjun demonstrated urban NOA technology in a live broadcast, a technology stemming from the end-to-end intelligent driving solution of HoloMatic. End-to-end technology has become the entry barrier for leaders in China's intelligent driving market.

However, despite the end-to-end intelligent driving system being regarded as the most advanced globally with the largest test scale and the longest test duration, Tesla's FSD system has not yet entered the Chinese market. After Elon Musk's visit to China on April 28, discussions surrounding Tesla's FSD entering the Chinese market intensified again, with the main view being that if Tesla needs the Chinese market, naturally, China's smart driving market also needs Tesla to boost its competitiveness.

The biggest advantage of end-to-end technology is that it can significantly reduce the amount of code, improve system efficiency, react more quickly, process a larger amount of information, and achieve higher performance limits. When Tesla began testing their FSD V12 system in November 2023, Musk revealed that the new system has just over 3,000 lines of code, compared to the previous version based on artificial rules with over 300,000 lines. Meanwhile, XPeng Motors claimed that their previous intelligent driving system had 100,000 lines of code, but leveraging end-to-end technology could achieve the effect that would otherwise require 100 million lines of code. In addition, when there is sufficient data and computing power, the evolution speed of data-driven end-to-end large models is astonishing. Since Tesla shifted to the end-to-end technology route, in just over a year, they have achieved significant progress, with new versions released on average every month from the original V12 version to the V12.4 version announced on May 20, 2024, and each new version has significant performance improvements.

With the arrival of 2024, Tesla's Full Self-Driving (FSD) feature has made significant progress in the legalization process in the Chinese market. On April 28, the same day as Elon Musk's visit to China, The China Association of Automobile Manufacturers, in conjunction with the National Computer Network Emergency Response Technical Team/Coordination Center of China, publicized the first batch of car models that meet automotive data security standards. It is noteworthy that Tesla's Model 3 and Model Y are the only foreign brands on this list.

Further progress was made on May 16, 2024, when the Management Committee of the Lingang New Area, China (Shanghai) Pilot Free Trade Zone implemented the "China (Shanghai) Pilot Free Trade Zone Lingang New Area Data Cross-Border Flow Classification and Hierarchical Management Measures (Trial)" that began on February 8 (hereinafter referred to as "Data Cross-Border Management Measures") and released the first general data list for data cross-border scenarios. This list covers three major fields: intelligent connected vehicles, biopharmaceuticals, and public funds.

According to the "Data Cross-Border Management Measures," cross-border data flow is classified into three categories: core data, important data, and general data, with core data being not allowed for cross-border flow. By contrast, important data can be submitted to the Lingang New Area's Data Cross-Border Service Center for security assessment before achieving data outbound. General data can freely flow after registration with the Lingang New Area Management Committee, provided they meet management requirements. Human-machine interaction and software testing data obtained from factories, laboratories, and closed test fields by intelligent connected vehicles are listed as general data that can freely flow, but data obtained from public roads are not included.

For the application of Tesla FSD in China, data from public road testing is crucial. According to the classification standards of the "Data Cross-Border Management Measures," sensitively processed data such as desensitized citizen identity information, vehicle location, and surrounding road environment should be managed as important data. After passing the security assessment, these data are also expected to achieve cross-border flow.

The data cross-border flow of Tesla FSD is gradually meeting compliance requirements, and there is widespread market optimism about its launch in the Chinese market within 2024. If Tesla FSD can successfully deploy in the Chinese market, it will undoubtedly promote China to become a pioneer in the field of intelligent driving. The Chinese market will gather the most advanced technologies, the richest data, and consumers to foster the development of superior intelligent driving products, thus enhancing the overall competitiveness of the industry. In such a competitive environment, the market will quickly eliminate those products that are merely speculative concepts.

For Chinese domestic enterprises, although computational power constraints are difficult to break through in the short term, their advantages in data and R&D capabilities should not be overlooked. Intensified external competition will prompt these enterprises to capitalize on their unique advantages and seek new ways to enhance competitiveness under limited computational power. The deployment of Tesla FDS in China will not only intensify market competition and train the competitiveness of domestic enterprises but will also promote the development of fundamental rules such as data compliance, revision of traffic laws, adjustments to insurance regulations, and security underpinning of artificial rules. By gaining a foothold in the formulation of these underlying rules, China will hold a stronger voice in the global establishment of intelligent driving game rules.

Overall, Tesla urgently needs to enter the Chinese market, and the Chinese market is likewise looking forward to the arrival of Tesla's FSD. As China's smart driving market rapidly evolves and enhances its competitive edge, China is expected to establish a leading position in the global smart driving arena.

In this era, competition in China's intelligent driving market is increasingly fierce. The focus of our discussion is: How do you view the necessity of Tesla joining the competition in the Chinese intelligent driving market?

As a leader in the global smart electric vehicle market, Tesla's advanced technology and mass production capabilities will undoubtedly have a significant impact on this market. Its technological innovation from Silicon Valley and commitment to sustainable development provide new ideas and directions for the development of vehicle intelligence. Tesla's entry will not only help to elevate the overall technical level of China's smart driving field but may also enhance the competitiveness of the local automotive industry, promoting the exchange and integration of technology.

Furthermore, Tesla has a vast user base and brand influence worldwide, which can effectively raise consumer awareness and acceptance of intelligent driving technology. A series of market responses and consumer feedback can also provide valuable market data for Chinese local enterprises, thereby allowing them to make more precise judgments in future research and development and market strategies.

We are very much looking forward to hearing your views, welcome to share your thoughts in the comments section.