Baidu Vice President Shang Guobin recently announced a collaboration with Tesla to integrate the latest version of Baidu Maps into Tesla vehicles in China. Since Tesla relies partly on map information for Autopilot and FSD, this move may get Tesla closer to launching FSD in China.
At the event last month, Baidu presented the latest version of Baidu Maps, which includes four different versions. They include Basic, 3D leading, 3D flagship and Smart Edition for ADAS (Advanced Driver Assistance Systems). Tesla vehicles will receive the new “3D Leading” version from Baidu which features over 300 customized elements. Similar to the 3D version of Apple Maps and Google Maps, it includes 3D models for buildings, trees and information on roads and lanes. Baidu Maps is available for a variety of operating systems, including Android, iOS, and Linux.
Tesla has added a new 3D map view in update 2023.44.32 for China.
Instead of an image-based, overhead map view, these new maps show your vehicle as it moves through a 3D environment that visualizes lanes, buildings, trees and more.
Besides Tesla, BYD’s Vice President Guobin added that Baidu will also collaborate with Huawei and electric vehicle startup JiYue. Huwaei is involved in three well-known car brands in China including Avatr (with Changan and the battery giant CATL), Luxeed (with Chery) and Aito.
The addition of 3D maps being added in China could open up the door for Tesla to implement 3D maps from Apple or Google in other regions.
Apple Maps' 3D views
Not a Tesla App
Voice Assistant
Tesla recently added a voice assistant in China to replace the aging voice command system. Although the voice assistant is currently exclusive to China, Tesla is already working on voice assistant in English for other regions. Other languages are likely to follow.
FSD in China
It appears that China may be Tesla’s next FSD market. Elon Musk recently traveled to China to discuss FSD and how data would be gathered and stored. Musk also hinted at the possibility of Tesla offering FSD in China by saying, “It may be possible very soon” when he was asked about FSD arriving in China.
Baidu’s Robotaxi
Earlier this year, Baidu introduced a 24-hour operation for its Apollo Go service in select areas of Wuhan, China — becoming the first company in China to offer a 24/7 autonomous driving service.
Baidu’s journey in autonomous driving began in 2013 and, as of today, Baidu Apollo’s advanced autonomous driving systems have completed over 100 million kilometers (62 million miles) of testing and over 5,000 patents granted. In comparison, Tesla has about 1.3 billion miles driven on FSD, with 300 million miles traveled on FSD v12 alone.
Tesla Sales in China
Last year, Tesla remained the world's leading BEV brand, selling 1.8 million units while China’s BYD sold a total of 3.02 million new energy vehicles (NEV), of which 1.57 million were fully electric.
Tesla recently celebrated its 10th anniversary in China and has delivered more than 1.7 million cars since its first delivery of the Model S.
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In the latest episode of Jay Leno’s Garage, Tesla’s VP of Vehicle Engineering, Lars Moravy, confirmed that the new Model Y will feature adaptive headlights.
As Moravy was talking about the updated headlights in the vehicle, which now sit a few inches lower than before, he stated that in a couple of months, Tesla will add adaptive headlights in the U.S.
While Tesla has already introduced adaptive headlights in Europe and the Indo-Pacific, the feature has yet to make its way to North America.
Originally delayed in the U.S. due to regulatory issues, manufacturers have been able to implement adaptive headlights since mid-2024. Meanwhile, competitors like Rivian and Mercedes-Benz have already rolled out their own full matrix headlight systems, matching what’s available in other regions.
Update: This article has been updated to clarify that adaptive headlights will indeed be launched in the U.S., shortly after the vehicle launching in March.
Currently, Tesla in North America supports adaptive high beams and automatic headlight adjustment for curves, but full matrix functionality has yet to be rolled out. Meanwhile, matrix headlights are already available in Europe, where they selectively dim individual beam pixels to reduce glare for oncoming traffic and adapt to curves in the road.
It was surprising that matrix functionality wasn’t included in the comprehensive 2024 Tesla Holiday Update. This feature would likely improve safety ratings, so we can only assume Tesla is diligently working to secure regulatory approval.
Adaptive Headlights on Other Models
Lars didn’t confirm whether the refreshed Model Y comes with the same headlights as the new Model 3 and the Cybertruck, instead simply calling them "matrix-style” headlights.
The headlights on the new Model Y appear very similar to those available in the 2024+ Model 3, possibly meaning these other models will also receive adaptive headlight capabilities in the next couple of months.
For vehicles with older-style matrix headlights, it’s unlikely that adaptive beams support will launch at the same time, but they will hopefully become available soon afterward.
For the first time since launching Tesla Insurance in 2019, Tesla will begin underwriting its own policies, starting in California.
Tesla Insurance originally debuted in California and has since expanded to several U.S. states. Until now, policies were underwritten by State National, a subsidiary of the Markel Insurance Group. However, Tesla is now transitioning to fully in-house underwriting, beginning with its home state.
As part of this shift, California Tesla Insurance customers who receive an in-app offer to switch will be eligible for a one-time 3% discount on their next term’s premium—covered entirely by Tesla Insurance.
What is Underwriting
Underwriting is the process an insurance company uses to assess risk and determine whether to offer coverage, at what price, and under what terms.
Insurers evaluate factors such as driving history, credit score, age, vehicle type, and location. In Tesla’s case, vehicle driving data (not available in California) also plays a key role in risk assessment. These factors help classify drivers into risk categories, which influence their base premium.
From there, coverage limits, deductibles, and policy inclusions or exclusions can further adjust the final premium up or down.
Robotaxi and Other Benefits
At first glance, underwriting insurance might seem like a complex and costly process for Tesla. However, there are several compelling reasons why this move makes sense.
Insurance Income: Insurance is a highly profitable industry. Companies set rates based on risk, offering lower premiums to safer drivers and higher rates to riskier ones. This not only maximizes profitability but also incentivizes safer driving behavior, reducing overall claims.
Data Advantage: Tesla collects vast amounts of driving data through its Safety Score system. While California doesn’t allow Safety Score to impact premiums, Tesla can still use this data in the underwriting process to refine risk assessments and pricing for its vehicles.
Control Over Repair Costs: By underwriting its own policies, Tesla gains direct control over repairs and total loss decisions. This allows them to dictate when, where, and how repairs are done, optimizing costs for parts, labor, and service while ensuring vehicles are fixed according to Tesla’s standards.
FSD-Driven Discounts: Tesla has already begun offering insurance discounts for drivers using Full Self-Driving (FSD). By underwriting its own policies, Tesla could expand these incentives, potentially offering greater discounts to frequent FSD users in the future.
Preparing for Robotaxi: Perhaps the biggest long-term reason for this shift is the June launch of the Robotaxi fleet. How will Tesla insure these vehicles? The answer is simple—by underwriting its own policies and assuming liability.
Tesla’s decision to underwrite its own insurance isn’t just about cutting out middlemen—it’s a step toward lowering costs, increasing profitability, and preparing for the future of autonomous driving, a risk many insurance companies may be unwilling to make.
Further Expansion
This could be a strong sign that Tesla is preparing to expand its insurance offerings now that it has taken on the underwriting process itself. In July 2024, Tesla hired a former GEICO insurance executive to lead the expansion of Tesla Insurance and help reduce costs—a move that now appears to be paying off.
Rather than a traditional expansion, Tesla has instead made a bold move by bringing underwriting in-house, something few expected. However, it aligns with Tesla’s strategy of vertically integrating and controlling key aspects of its business, whether in manufacturing, software, or now, insurance.
If this pilot program proves successful, it could pave the way for Tesla Insurance to launch in more states—and potentially even other countries. With 2025 shaping up to be a pivotal year, we may see Tesla accelerate its insurance expansion sooner than expected.