Tesla Collaborate With Baidu to Allow Self-Driving Mode in China

Tesla ( TSLA ) has reportedly struck a deal with Baidu ( BIDU ), China's leading search engine, to enable its Full Self-Driving (FSD) system in the country. The agreement, which grants Tesla access to Baidu's mapping license for data collection on Chinese roads, marks a pivotal moment in Tesla's expansion efforts in the world's largest automotive market.

The deal, recently finalized, signals a strategic move for Tesla CEO Elon Musk, who has been actively seeking regulatory approvals for the FSD software rollout in China during his recent visit to the country. With Baidu's lane-level navigation system also included in the agreement, Tesla ( TSLA ) is poised to leverage Baidu's extensive mapping expertise to enhance its autonomous driving capabilities.

In China, where stringent regulations govern intelligent driving systems, the acquisition of a mapping qualification is a prerequisite for operating on public roads. By partnering with Baidu ( BIDU ), Tesla gains access to crucial mapping data necessary for its FSD software to function effectively and legally in the Chinese market. Moreover, Tesla's fleets will now be able to gather valuable data about their surroundings, contributing to the refinement of autonomous driving technology.

While the specifics of data ownership remain unclear, the collaboration underscores the growing synergy between Tesla ( TSLA ) and Baidu ( BIDU ) in advancing self-driving technology. Notably, this partnership builds upon their existing relationship established in early 2020 when Tesla began incorporating Baidu's navigation map into its vehicles in China.

Although the announcement of the collaboration came during a broader news conference by Baidu ( BIDU ) and did not explicitly mention the FSD feature, the implications for Tesla's expansion in China are substantial.

Technical Outlook
Baidu Inc. ( BIDU ) stock is up 0.62% on Monday's pre-market trading session with the stock closing with a Relative Strength Index (RSI) of 49.31 making it prime for a bullish start for the first day of the week.
However, BIDU has been trading below the 200-day Moving Average (MA) for over 7 months.