According to the China Daily, which cited informed sources, Elon Musk's recent visit to China included not only seeking approval to launch Tesla's most advanced FSD software but also proposing tests for autonomous taxis.

The report highlighted that senior government officials conveyed to Musk that China "welcomes Tesla to conduct some autonomous taxi tests" in the country and hopes that Tesla "will set a good example." However, the government did not immediately approve the widespread use of the FSD feature.

Amid declining sales and a tumbling stock price last month, Musk announced a strategic shift for Tesla, focusing entirely on autonomous taxis. He declared that the company would unveil its first product on August 8.

China, Tesla's second-largest market, faces increasing challenges from local electric vehicle brands offering lower prices and more features. The introduction of autonomous taxis could be Tesla's lifeline to regain market share and escape the internal price war.

The report also mentioned that during Musk's visit, there was no detailed discussion on the collection and transmission of autonomous driving data. Before a full rollout of the FSD feature, Tesla must still receive approval to collect extensive data for training its autonomous driving AI.

Additionally, last month's announcement of Tesla's collaboration with Baidu was touched upon. Insiders noted that Tesla does not rely on maps for its autonomous driving capabilities and has not obtained a license to use Baidu's maps. The collaboration might not involve FSD but simply implies an improvement in the map precision provided by Baidu to Tesla.