Musk, China is good
On the first day of Tesla’s founder and CEO Elon Musk’s arrival in China, Tesla welcomed the benefits.
On April 28th, China Automobile Industry Association and National Computer Network Emergency Technology Processing Coordination Center issued the Notice on Testing Four Safety Requirements for Automobile Data Processing, and all the models produced in Tesla Giga Shanghai met the compliance requirements. Previously, Tesla had realized local data storage in Tesla Shanghai Data Center in 2021. In addition, Tesla introduced a third-party authority to audit the company’s information security management system and passed the security management system certification (ISO27001).
Musk said on the social platform on April 28 that Tesla will invest about 10 billion US dollars in AI training and reasoning in 2024, and the latter is mainly used for automobiles. If any company can’t reach this level of expenditure and can’t spend efficiently, it can’t participate in the competition.
Six car companies, including Tesla, passed all four requirements of national automobile data security.
At the invitation of the China Council for the Promotion of International Trade, on the afternoon of April 28th, Tesla founder and CEO Musk arrived in Beijing. Musk said that he was glad to see the progress of electric vehicles in China, and all cars will be electric in the future. On April 28th, Tesla issued a document saying that it will continue to deepen its cultivation in China, develop together with the industry in the fields of artificial intelligence, electric vehicles and energy storage, accelerate the landing of clean energy and autonomous driving technology, and turn the beautiful vision into reality.
On April 28th, the Technical Department of China Association of Automobile Manufacturers disclosed the notification on the detection of four safety requirements for automobile data processing (the first batch). According to the report, there are six car companies, including (), Ideality, Lotus, Hezhong New Energy, Tesla and Weilai, and a total of 76 models meet the four compliance requirements for automotive data security.
According to the circular, in order to standardize automobile data processing activities, protect users’ legitimate rights and interests, encourage head car manufacturers to play a role as a benchmark, and promote the formation of a good environment for the whole society to jointly safeguard automobile data security and promote the development of the automobile industry, China Automobile Industry Association and the National Computer Network Emergency Technology Processing Coordination Center are based on the "Several Provisions on Automobile Data Security Management (Trial)" and GB/T 41871-2022 "Information Security Technology Automobile Data Processing Safety Requirements" and other laws and standards, and in accordance with the principle of voluntary inspection by enterprises. Since November, 2023, we have organized the inspection of automobile data safety compliance of newly listed intelligent networked vehicles of automobile manufacturers in 2022-2023. This test covers four compliance requirements, such as anonymous processing of external face information, default not to collect cockpit data, in-vehicle processing of cockpit data, and significant notification of personal information.
Notice on the Detection of Four Safety Requirements for Automobile Data Processing disclosed by the Technical Department of China Automobile Association
Some senior auto industry analysts analyzed the Shanghai Stock Exchange reporter, and this incident released two signals: 1. The state has formulated clear rules for auto data security. 2. All car companies are treated equally before the rules, including wholly foreign-owned car companies. "Obviously, this will help foreign investors to invest in China and further expand their investment in China. At the same time, it also shows that the state has been making efforts to improve the foreign investment environment. "
Tesla FSD landing requires data acquisition and other preparations.
On April 28th, Musk, who just arrived in Beijing, said on social media that Tesla will invest about $10 billion in AI training and reasoning this year, and reasoning is mainly used in cars. Musk said that any company that spends less than $10 billion a year or cannot deploy it efficiently cannot compete in the market.
In January, 2024, Tesla added $500 million in new investment and purchased about 10,000 NVIDIA H100 GPU for the training of autonomous driving. According to statistics, Tesla may have more than 30,000 H100 GPU. Musk recently said that Tesla may be the second company with the number of H100 GPU in NVIDIA, second only to Meta, and xAI ranked third.
Tesla’s heavy investment in AI is aimed at the future business opportunities of autonomous driving. Musk said that Tesla will launch a driverless taxi on August 8, 2024. Recently, Tesla gradually began to push to North American users on a large scale based on end-to-end FSD V12. FSD V12 achieves the goal of autonomous driving through a large amount of video training data, which enables Tesla to save hundreds of thousands of lines of code. However, training such AI autopilot requires a lot of computing power. Musk said in August, 2023 that Tesla will soon launch a GPU cluster consisting of 10,000 NVIDIA H100′ s to train the new FSD system.
In terms of price, just in April, Tesla lowered its offer for FSD(Full-Self Driving, referred to as "FSD") twice to attract users. Just a week ago, Tesla announced that the price of its FSD system package was lowered by about one-third from $12,000 to $8,000, just after lowering the price of models in the Chinese and American markets. Prior to this, on April 13th, Tesla announced that the monthly subscription price of FSD (supervised) had dropped from $199 to $99, and the subscription price was directly "halved".
Musk predicts that Tesla’s FSD test mileage needs to reach 6 billion miles to meet the requirements of global regulators. The data released by Tesla on April 6 shows that the actual test mileage of FSD is 1 billion miles. At present, Tesla FSD has been upgraded to the end-to-end version of V12.3, no longer relying on traditional rule codes, but relying entirely on neural networks and data drivers.
According to industry experts, if Tesla FSD lands in China, the data collection, model training and computing center will be regarded as the key. () The research report points out that if FSD is popularized in China, the whole set of closed-loop data needs to be made in China, and preparations should be made in terms of data collection and model training, and whether the BEV sensing scheme can be well adapted locally should be considered. In China, FSD mapping may need to cooperate with China manufacturers, and Tesla needs to set up a local computing center and a local algorithm adaptation team.
Us regulators release Tesla Autopilot survey summary report
The National Highway Traffic Safety Administration (NHTSA) revealed last Friday that it has started a new investigation into Tesla. The survey covers Model Y, X, S, 3 and Cybertruck vehicles equipped with Autopilot, which were produced in the United States from 2012 to 2024.
At the same time, NHTSA has launched an investigation into Tesla’s Autopilot recall in December last year. The agency found that the Autopilot autopilot system could not fully ensure the driver to concentrate on the driving task, and it would lead to the driver’s overconfidence in the function of the system. According to the report, these factors led to foreseeable misuse and avoidable accidents, of which at least 13 accidents involved one or more deaths.
NHTSA concluded that there was a "critical safety gap" between the driver’s ability expectation of Tesla Autopilot system and the real ability of the system, which led to a series of avoidable accidents. Tesla conducted a recall of 2 million American Tesla vehicles in December last year, and improved the driver monitoring system of these vehicles through software upgrades.
Tesla’s share price closed down 1.11% last Friday, with a cumulative decline of more than 30% this year. Tesla’s previously released financial report for the first quarter of fiscal year 2024 showed that the revenue in the quarter fell by nearly 9% year-on-year, the decline in revenue was the highest in 12 years, and the net profit dropped by 55% year-on-year. The key indicators of the financial report were all lower than expected.
According to another report, US Securities and Exchange Commission (SEC) documents show that Drew Baglino, a former senior vice president of Tesla who announced his resignation earlier this month, sold about 1.14 million shares of the company, with a total value of about 181.5 million US dollars. According to the document, Baglino also reduced its holdings of Tesla shares twice this year, with a total value of about 4 million US dollars.
Examined by: Zhu Jianhua Producer: Zhang Xiaoguang Issued by: Lin Yanxing.