Tesla's Model 3 And Model Y Clear China's Data Security Hurdle, FSD Software Deployment Nears

EV giant Tesla Inc‘s TSLA Model 3 and Model Y have been deemed in compliance with China’s data security requirements by a Chinese auto association, marking a significant stride towards the deployment of its full self-driving (FSD) driver assistance software in the world’s largest EV market.

What Happened: The China Association of Automobile Manufacturers (CAAM) on Sunday said in a statement that 76 models of six companies including BYD, Ideal, Lotus, Hezhong New Energy, Tesla, and NIO met the compliance requirements for automotive data security.

Both Tesla’s locally made Model 3 and Y were among the vehicles that met the requirements. The two models are Tesla’s mass-market offerings with their lower price point as compared to its other models.

Why It Matters: Data security was one of the concerns that prevented the deployment of Tesla’s FSD software in China. Chinese regulators previously mandated that all data collected by its vehicles in China be stored within the country, leaving it unable to transfer any back to the United States.

The company is now looking for permission to transfer driving data overseas, Reuters reported on Monday, citing a person familiar with the matter.

The development comes on the heel of company CEO Elon Musk‘s previously unannounced trip to China over the weekend. Tesla has also partnered with Beijing-based internet company Baidu Inc for lane-level mapping and navigation data for China, crucial to deploying FSD in the country.

The Wall Street Journal on Monday also reported that Chinese officials have tentatively approved the company’s plan to launch FSD in the East Asian country.

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