Tesla has worked with ByteDance, the Chinese owner of TikTok, and artificial intelligence startup DeepSeek to integrate their AI models into a newly-launched, long-wheelbase version of Model Y, a move expected to improve the voice assistant in its cars sold in China.
Why it matters: It is probably China’s regulatory requirements that forced Tesla to seek local partners for its AI features. AI service providers are mandated to undergo algorithm filing and security assessment, according to the Interim Administrative Measures for Generative Artificial Intelligence Services released in 2023. Tesla has integrated the Grok chatbot provided by Elon Musk’s AI startup xAI into vehicles in the US starting in July.
- Tesla’s collaboration with ByteDance and DeepSeek on using their AI models is probably at an early stage, since it is unknown when those AI models have or will come into play on Tesla’s Chinese cars, Bloomberg reported. The US automaker also did not reveal whether it has similar plans for the rest of its China-made vehicles, including the Model 3 sedans and the Model Y crossovers.
Details: Tesla is working with ByteDance’s enterprise cloud service, Volcengine, to make large language models, DeepSeek Chat and ByteDance’s Doubao, available to owners on their vehicles, according to a document uploaded to Tesla’s official website dated August.
- Doubao will allow drivers to use voice commands, for instance, to handle navigation and control music, while DeepSeek‘s chatbot uses generative AI to hold conversations with owners, the document said. A ByteDance representative confirmed the news to financial media publication Caixin.
Context: Tesla has stepped up efforts to meet growing Chinese consumers’ demand for in-car tech features ranging from advanced driver assistance to human-like voice interactions at a time when its market share in the country is falling.
- The automaker had only 4.1% of the passenger car market in July, down 1.1% from a year ago, while local EV entrants, such as Xiaomi and Xpeng Motors, together captured 21.4% of the segment, according to figures published by the China Passenger Car Association.
- International automakers and Chinese auto majors have been rushing to support AI models from large tech firms such as ByteDance, as well as promising startups. BMW in March forged a partnership with Alibaba to use the latter’s QWen large language models on upcoming Neue Klasse models, scheduled for delivery in China in 2026.
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