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FSD Self-Driving Software Set to Transform China's Roads in 2024 · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk podcast.
• 0:05
  This. Is a show where we discuss.
• 0:07
  The Critical. Crossroads The Shape SpaceX,
• 0:09
  Tesla X The Boring Company. And Neuralink.
• 0:13
  I'm your host, Will. Walden Tesla is preparing to
• 0:17
  register its Full Self Driving software with Chinese
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  authorities aiming to launch the advanced feature this year, And
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  it's according to three sources familiar with this matter now.
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  The move is part of Tesla's broadest strategy to expand its
• 0:29
  presence in China, its second largest market.
• 0:31
  And additionally, the company is considering offering the FSD
• 0:34
  software as a monthly subscription to his Chinese
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  customers. Now securing registration with
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  China's Ministry of Industry and Information Technology, the MIIT
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  will allow Tesla to conduct internal testing of the FSD
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  system using its employees on public roads in China.
• 0:51
  This testing phase is a precursor to making the software
• 0:53
  available to Chinese users as an upgrade in the coming months.
• 0:57
  And currently, Tesla offers 2 less advanced versions of its
• 1:00
  Autopilot driver assist system in China.
• 1:03
  The FSD system, which Tesla currently sells for a one time
• 1:06
  fee of ¥64,000 that's approximately $8800 US, might
• 1:11
  also be available as a monthly subscription fee, likely around
• 1:15
  the $100 mark. About $98 apparently.
• 1:18
  Now the introduction of a subscription model could attract
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  more customers by lowering the upfront cost area.
• 1:24
  Now, Tesla's expansion plans include the potential licensing
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  of its FSD software to other automakers in China, and the
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  strategy could diversify Tesla's revenue streams amiss a
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  competitive and discount driven market.
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  Notably, Tesla sales in China have declined by 7.6% in the
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  first four months of this year due to increased competition
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  from local EV manufacturers. Yel Zhang, managing director of
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  Shanghai based consultancy Automotive Foresight, said that
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  Tesla's introduction of FSD in China would compel other EV
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  startups to expedite the research and development
• 2:00
  efforts. The competitive pressure shows
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  the significance of Tesla's technology and the competition
• 2:08
  between all these automakers and the roll out of FSD in China
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  aligns with a strategic shift by Tesla CEO Elon Musk to power the
• 2:16
  development of its self driving system using data collected and
• 2:19
  processed within China. Now this approach not only
• 2:22
  leverages local data but also adheres to regulatory
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  requirements regarding data localization.
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  Now, Tesla aims to introduce version 12 of the FSD software
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  in China, and Musk has expressed confidence that this version
• 2:37
  paves the way for fully autonomous driving systems.
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  The software's evolution reflects Tesla's ongoing
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  commitment to refining its self driving tech, and Tesla will now
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  join a competitive field in China, where at least 10
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  automakers and suppliers, including Huawei and Zping, are
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  developing Level 2 autonomous driving capabilities.
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  And unlike Tesla, some competitors like Lee Auto and
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  Zping offer similar systems for free on high end models, while
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  others, such as Neo provide trial periods at no cost.
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  The Level 2 systems, including Tesla's FSD, still require
• 3:12
  active driver supervision and hands on control.
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  However, Elon Musk has indicated that more fully autonomous
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  vehicles are on the horizon. Tesla plans to reveal additional
• 3:22
  details about its robo taxi program in August, which could
• 3:25
  provide insights into his future autonomous vehicle strategy.
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  A Tesla's autonomous driving system is built on an end to end
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  neural network, a distinct departure from rule based
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  algorithms. The AI enables the system to
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  learn faster and make more human like decisions, a capability
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  that sets Tesla apart from its competitors.
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  Other companies like Huawei are following Tesla's lead by
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  developing end to end AI models for autonomous driving.
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  Despite this, catching up with Tesla in terms of data and
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  computing power remains a significant challenge for
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  rivals. Now this is going to be a
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  competitive market in the next year and these other companies
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  will hop on the bandwagon and get more processing compute.
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  Tesla's advantage lies in a supercomputer, Dojo, which
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  trains the FSD system using video data from millions of
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  Tesla vehicles. This connected network, the
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  largest fleet of its kind globally, provides Tesla with an
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  unparalleled data advantage, essentially for advancing its
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  self driving capabilities. And in parallel with the FSD
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  rollout, Tesla has partnered with Baidu for in vehicle
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  mapping and navigation services. This collaboration addresses one
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  of the critical requirements for launching advanced self driving
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  features in China, ensuring accurate lane level navigation
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  and mapping. Now, Tesla initially engaged
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  Baidu for mapping services way back in 2020, but the
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  partnership has now intensified to support more advanced
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  autonomous driving functionalities.
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  The development follows Musk's recent visit to China, where he
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  sought approval for the FSD software to counter declining
• 5:00
  revenues. The suite of FSD features, while
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  requiring constant oversight, aims to enhance Tesla's
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  autonomous driving offerings. The company's pricing strategy
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  for FSD in China mirrors its approach in US, where customers
• 5:13
  can either purchase the software outright or subscribe monthly.
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  Tesla also offers Enhanced Autopilot EAP in China and half
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  the price of FSD has introduced subscription options for EAP,
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  allowing customers to experience the technology for a monthly
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  fee. This flexibility and pricing and
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  access models could boost adoption rates among China
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  consumers, and recent developments such as Tesla
• 5:36
  Shanghai factory passing data security requirements have
• 5:39
  facilitated the broader acceptance of Tesla vehicles and
• 5:41
  restricted areas within China. This compliance with national
• 5:45
  standards enhances the credibility and marketability of
• 5:48
  Tesla's products. Now, the FSD software rollout in
• 5:51
  China is anticipated to generate significant interest and
• 5:54
  discussion and revenue. Given the competitive nature of
• 5:57
  the Chinese EV market and the technological advancements it
• 6:00
  represents. The company's strategic moves
• 6:03
  and partnerships aims to solidify its position as a
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  leader in autonomous driving technology in China and
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  worldwide. Hey, thank you so much for
• 6:19
  listening today. I really do appreciate your
• 6:21
  support. If you could take a second and
• 6:23
  hit the subscribe or the follow button on whatever podcast
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  platform that you're listening on right now, I greatly
• 6:29
  appreciate it. It helps out the show
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  tremendously and you'll never miss an episode.
• 6:33
  And each episode is about 10 minutes or less to.
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  Get you? Caught up?
• 6:37
  Quickly and. Please, if you want to support
• 6:40
  the show even more, go to patreon.com slash.
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  Stage 0. And please take care of
• 6:46
  yourselves and each other, and I'll see you tomorrow.