A Data-Driven Partnership

The team was there to explore ways of integrating navigation map information, which Baidu holds, with the Full Self-Driving (FSD) version 13 software owned by Tesla. The information that Baidu will be integrating into Tesla’s system included traffic lights and lane marking signals.

It’s not clear how many engineers Baidu dispatched to Tesla and whether the experts were there. Sources say the purpose of their visit was to enhance FSD version 13’s awareness of Chinese roads. The engineers were expected to do this using more accurate and up-to-date mapping data. It’s not clear how much is involved in the Tesla-Baidu partnership.

However, the deepening relationship between the two tech companies comes at a time when both companies are navigating regulatory and data restrictions imposed by Washington and Beijing. These restrictions have made it difficult for Tesla to introduce its advanced driving system in China, which is its second biggest market.

Tesla’s AI driving system does not need navigation maps in the US for accuracy or to stay updated. This is because unlike in China, local AI training enables the technology to work better.

The Legal Challenge

The Elon Musk owned EV manufacturer has not succeeded in training its Tesla autopilot systems in China using data derived from its two million cars due to provisions in Chinese laws.
Tesla has not been able to shift the data it collects from Chinese roads to the US to train its driving system.

The Chinese law requires that companies store their data locally and must get approval to transfer it outside China. Additionally, the US does not allow the EV manufacturer to train its AI in China. Tesla is also under immense pressure from Chinese rivals like XPeng and BYD, which offer cheaper alternatives and don’t levy additional charges for their driver-assistance technology. Earlier this month, XPeng reported that it shipped over 30,000 cars for the fourth month in February.

By strengthening its ties with the EV car maker and having Baidu AI in Tesla cars, the Chinese tech giant could reap big benefits because its AI innovations are currently trailing rivals such as ByteDance and DeepSeek. Tesla is planning a full rollout of its FSD technology in China this year.

FSD Version 13 Improvements

Tesla’s FSD is a stack of driving-assistance technologies that utilize generative AI to maneuver complex traffic conditions. The latest version of the software had not been trained adequately to fully adapt to Chinese roads. This caused drivers to frequently violate traffic rules like driving through red lights and shift to wrong lanes where they failed to respond.

The partnership with Baidu comes about two months after Tesla’s controversial software update that the company sent to Chinese car owners in February. This update included urban navigation features. However, customers complained that it fell short of Musk’s commitment on full FSD rollout in the Chinese market.

Baidu has been supplying Tesla with navigation maps since 2020. Tesla is working hard to maintain its Chinese market share even as local EV makers aggressively push sales. Tesla sales have dipped significantly in Europe and in the US. The EV maker charges car owners $8,834.04 to use its FSD system. This is in addition to the $32,500 that Chinese buyers pay for a Tesla car.
In February, Tesla’s biggest rival BYD said its advanced driver-assistance will be included in new EV models without extra charges. Baidu shares rose by 2% in the US while Tesla stocks dropped 1% on March 13 in premarket trading.

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Demand for Low-Priced Models

Xpeng’s monthly deliveries included 15,000 units of lower-priced Mona vehicle models. The Mona M03 model, which comes with a basic driver assist software system, hit the 15,000 unit sales mark per month in December.

According to EV manufacturers, surging demand for driver-assist systems pushed demand for its P7+ electric sedan to over 30,000 units in just 3 months. The company introduced the sedan to the Chinese EV market in November 2024.

Analysts say that Xpeng’s expansion plans to introduce new vehicles to the market have given the EV firm “a good chance to extend its solid delivery momentum.”

China’s automobile market remains competitive as conventional manufacturers and new entrants rush to unveil cars with new tech features and reduce prices. Traditionally, the January-February months tend to be slow for Chinese vehicle sales. This is because the months coincide with its longest annual holiday, the Lunar New Year.

Gradual Growth

China’s EV industry has been experiencing gradual growth with companies reported growth in units sold this month. Smartphone maker Xiaomi shipped over 20,000 EVs for the fifth month last month. Last week, the company reduced the starting price for its EV sedan SU7 Ultra from $111,878 to $72,750.

Following the price drop, analysts say the order situation for the SU7 is much lower compared to actual sales. This means that the only challenge Xiaomi has is its ability to to manufacture more vehicles.

Leading EV giant BYD reported that it sold 318,233 new EV vehicles in February. This number is slightly higher than its January sales. The company announced that it was introducing a driver-assistance system in a range of EVs. The company also plans to integrate AI from DeepSeek. Zeekr, a company owned by Geely sold 14,039 EV units in February compared to 11,942 units it shipped in January 2024.

EV Sales Struggles

Although some Chinese EV brands recorded an increase in sales revenue last month, there are brands whose sales have dipped over time. One of these is Li Auto. EV sales for this company dropped from 29,927 in January to 26,263 units in February. Last month, this company unveiled an exterior design for its initial full battery-electric SUV. Li Auto’s premium-priced EVs have become popular among Chinese buyers because they are fitted with a fuel tank that extends their battery driving range.

The other company that recorded a drop in February sales is Aito. The company, which is owned by the Seres brand that uses Huawei technology, reported the lowest EV sales in February at 21,517 units. Nio also experienced a drop in February. Sales for this EV manufacturer dropped from 13,863 in January to 13,192 units in February. Nio unveiled a 5-year zero interest plan at the beginning of February 1 to boost sales.

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According to Reuters, sources say that Nissan is at a crossroads as the acquisition talks with Honda to make the world’s largest automaker grow complicated due to increasing differences.

Foxconn’s chairman Young Liu told reporters on Wednesday, “The firm will announce a new Japanese customer for its EV contract manufacturing business in the first quarter,” though he did not mention the date of the announcement.

Upon being asked about whether Foxconn will buy Renault’s share in Nissan, Liu said, “If there’s an operational need, we will consider it. But buying the stake isn’t our goal — our goal is cooperation.”

Foxconn’s Strategic Approach to EV Expansion

Foxconn is pushing hard with its EV strategy to become a big name in the global EV world. The company has teamed up with many car makers to use its know-how in electronics and making things. Instead of buying existing car companies, the Taiwanese company wants to work with well-known brands to speed up EV production and come up with new ideas. In October 2024, Foxconn teamed up with Nvidia to build the world’s largest superchip factory in Mexico.

The talks between Foxconn and Nissan show a bigger change in the industry where tech firms are more and more joining forces with old-school car makers. Nissan, with its years of experience in making cars, and Foxconn, with its strong points in electronics and managing supply chains, could start a partnership that helps both sides.

In his first public comment about the ongoing talks between Nissan and Foxconn, Liu said, “Purchasing its shares is not our aim; our aim is cooperation. Foxconn is also talking about cooperation with France’s Renault, given that company’s stake in Nissan.”

Foxconn Nissan Partnership

The Foxconn Nissan Partnership is expected to center around joint development efforts in EV production. The manufacturing strengths and supply chain optimization of the chip maker are in sync effectively with the auto maker’s core expertise. The Foxconn and Nissan partnership would strengthen their competitive position during the fast-moving EV market transformation.

As part of its business strategy, Foxconn actively partners with different automakers to promote its MIH Open Platform which serves as an electric vehicle development platform. Through their partnership, Nissan and Foxconn would pool their technology developments while working together to design new EV parts.

The Future of Foxconn’s EV Strategies

Foxconn’s EV strategy targets markets that go further than what Nissan offers. The company established partnerships with Fisker and Stellantis and maintains continuous efforts to bring in more stakeholders within the EV industry. As part of its Foxconn Growth Strategy, the company aims to establish itself as the leading EV contract manufacturing entity just like it has already achieved in consumer electronics.

The Foxconn and Nissan partnership presents an example that future technology companies and automobile producers can use to restructure the automotive market. The growing EV market demands strategic partnerships that establish the foundational principles for mobile technologies of the future.

Through its clear discussion of Nissan’s participation, Foxconn stands as an essential partner in the developing EV industry.

The Foxconn Nissan Cooperation could pave the way for future collaborations between tech firms and automakers, further transforming the automotive industry. As EV demand grows, partnerships like this will be crucial in shaping the future of mobility.

The post Foxconn and Nissan Explore EV Cooperation, Deny Acquisition Plans appeared first on Tech Research Online.

According to Yahoo Finance, BYD said in an event on Monday that it will make its God’s Eye driver-assistance system a standard in all of its EVs starting from $13,700 and include it in the lower cost models as well like Seagull hatchback.

Jefferies’ analysts said, “BYD has now gone from 0 to 1 in assisted driving development, which will accelerate the adoption rate of Navigation on Autopilot function in the mass market and lead to a wave of upgrades by existing users.”

BYD’s Aggressive Strategy

The Chinese automaker raises the EV Price War through its new electric vehicle models which will now include free BYD ADAS (Advanced Driver Assistance System) as their standard feature. BYD has launched its latest EV models in a price war against Tesla and Nio and Xpeng as they simultaneously improve their features but maintain lower costs for their Smart-Driving System. Independent China autos analyst Lei Xing said, “This is basically a non-price-cut price cut disguised as a smart-feature update on almost all BYD branded vehicles.”

As a result, stocks of the Chinese automaker surged by 4.5% in Hong Kong on Tuesday 11th February 2025. Last week as well, BYD’s shares surged by 21% in anticipation of Monday’s event where the announcement related to self driving was made.

Assisted driving stands as a fundamental competitive advantage for automobile manufacturers operating in China’s market. Competing brands charge more than $20,533 for vehicles with similar features though some of these manufacturers ask for additional fees to enable the technology. The Full Self-Driving system of Tesla Inc. requires ongoing driver supervision before Beijing will permit its experimental launch.

Morgan Stanley analyst Tim Hsiao wrote in a note, “The sheer volume of model launches could make it difficult for peers to make timely responses.”

BYD Seagull Price Cut Fuels Competition

BYD takes out aggressive pricing measures by reducing the Seagull price that further enhances the market access to its budget -friendly electric vehicle. Seagull is a compact urban electric vehicle that has already become one of the most budget-common electric automobiles available in the Chinese market.

BYD’s decision to make advanced driving features more accessible could further strengthen its lead over Tesla and domestic competitors like Xpeng Inc. and smartphone giant Xiaomi Corp. These rivals have yet to offer similar technology in lower-cost vehicles. With over 4 million vehicles sold last year, BYD’s strategy may widen the competitive gap in the EV market. In November 2024, BYD achieved its 2024 sales goal and was also on the way to outselling Ford and Honda.

BYD Chairman Wang Chuanfu said in the event on Monday, “This year “will be the first for intelligent driving for everybody. It will become a must-have in the next two to three years, just as a seatbelt or an airbag.”

The post BYD EV Price War Escalates as Smart-Driving Tech Comes Free appeared first on Tech Research Online.

BYD’s stock performance in the Hong Kong stock exchange raised expectations of progress in its autopilot system. The company is also expected to unveil new intelligence features to its cars during an event that will happen on Monday February 10.

Intensifying Competition

Analysts expect the updated version of BYD smart-driving technologies to intensify competition in the Chinese EV market. The Shenzhen-based manufacturer is currently the biggest EV manufacturer in the world.

The newly updated driving technology could also enhance BYD’s efforts to penetrate new markets particularly at this time when the US and EU have imposed hefty tariffs on Chinese EVs.

“BYD’s acceleration of autopilot progress will have a meaningful impact on the market given its position as industry leader, and other players, especially mass market brands, will follow,” Analysts from Goldman Sachs Group wrote in a note.

The analysts added that Goldman Sachs expects BYD to disseminate its experience from the recent road-test with new model pipelines, including the autopilot system.

Battle for Self-Driving Technologies

EVs are becoming a major battleground as the race to create and roll-out driving technologies intensifies in China. EV manufacturers like XPeng and Tesla have made huge investments in driving technologies. The two Chinese EV firms are putting extra effort to convince consumers to pick their products as the convenient and safe options.

Although full self-driving vehicles are not widespread in China, companies based in the Asian country are already developing technologies that they need to make this happen. The number of companies that have deployed assisted driving functions on Chinese highways and complex urban roads has increased significantly in recent months.

Driving technology features have become important selling points for car manufacturers and a major differentiator in the market. Startups like XPeng and Nio are focusing on developing their own software stacks and chips. This allows them to optimize their systems and gives them more control. The expectation is that integration of smart driving technologies like interactive displays and advanced AI assistants will improve the overall driving experience for Chinese EV owners.

High Bets on EV Companies

This week, investors bets on Chinese EV manufacturers have been high. Option bets climaxed on February 6 when more than 22.000 contracts were traded. On Friday February 7, option volumes tripped the 20-day average. Li Auto traded in excess of 35,000 options on February 7. This was the highest volume the company has traded since May last year.

Geely Automobile Holdings traded close to 9000 contract options, the highest for the company in over four months. This week was also characterized by strong Chinese EV supply chain stocks. BYD stocks surged 27% while IMotion Automotive gained 49%. BYD Electronic contract options reached a new high on Thursday February 6 and maintained the same performance on Friday February 7.

Last year, BYD’s November sales data showed that the EV maker was going to surpass Ford and Honda’s global sales after its sales revenue increased by 16.6% compared to the same period in 2023. The company achieved this milestone after entering a $1 billion deal to establish a plant in Turkey and engaging in a massive hiring spree.

BYD is looking to sell between up to six million electric vehicles and hybrid cars this year. This target represents an increase of 4.27 million units that the company delivered in 2024. The China-based EV manufacturer was the eighth largest vehicle maker by sales last year.

The post BYD Records a 21% Shares Rise as Industry Awaits Update on Its Self-Driving Technology appeared first on Tech Research Online.

Waabi and Volvo self-driving trucks partnership is the second for Volvo, TechCrunch reported. Last year, Volvo partnered with Aurora Innovation to launch the Volvo VNL self-driving truck.

Waabi Technology

Waabi is working towards launching commercial pilots with Volvo trucks in the coming few months. The company will launch the pilots in Texas first. The autonomous trucks startup plans to have a product-ready self-driving demo on public roads by the end of 2025.

In the new partnership, Waabi says it will be using the same truck. However, the truck will run on Waabi AI trucking technology which includes the Waabi driver software, the sensor suite, and compute.

“We now have everything we need to scale our product. We have the next-generation AV 2.0 technology, we have an approach that is much more capital efficient, and a much faster path to market,” Waabi CEO and Founder Raquel Urtasun said.

The Waabi founder says his startup will conduct a full autonomous commercial launch soon after running the product-ready self-driving demo. Urtasun indicated that the launch will be done between customer deports and not through terminals.

AI Models

Waabi says that it has developed AI models that are capable of reasoning like humans. This, according to Urtasun, is what speeds up Waabi’s commercial deployment plans and makes its self-driving technology more efficient. Urtasun holds that high quality AI requires less computation and data to understand and respond to occurrences around it.

Waabi has been using simulation technology to train and test its autonomous driving technology. The startup has also been using simulation technology to design its trucks for OEM integration. Waabi launched its initial purpose-built truck in 2022. The startup’s first truck came with in-built compute, sensors, and software. Urtasun launched Waabi in 2021. Before that, she worked at Uber ATG as the chief scientist.

Waabi’s rival Kodiak Robotics has developed an autonomous driving system that features redundant software and hardware systems. However, Kodiak’s systment is not tied to a single manufacturer. Waabi on the other hand, is focused on integrating its self-driving technology into autonomous trucks during manufacturing but without interrupting the OEM assembly line. Urtasun sees this option as the best for developing a safe and reliable product.

Strategic Investment

The Volvo self-driving truck collaboration with Waabi builds on previous strategic investment that the automaker made in the startup two years ago. Through a venture unit dubbed Volvo Group Venture Capital, the giant auto maker participated in a Series B funding round through which Waabi raised $200 million. To date, the self-driving trucks startup has raised $282 million, which its founder says is sufficient to launch autonomous truck operations on public roads.
The new partnership will see Volvo manufacture trucks for Waabi at its Virginia plant. The first delivery will be released from the plant’s assembly line this year. Urtasun expects production volumes to reach scale level within two or three years. Urtasun said that her startup is not considering acquisition or merger.

“Trucking is only the beginning. 2025 is the year of trucking; it’s a make it or break it situation. I think there will be potentially more consolidation We’re going to do so much more than trucking – robotaxis, warehouse robotics. I have tremendously big plans for the company, and we are going to remain a fully independent company,” she said

Waabi faces competition from Kodiak and Aurora, which have raised $243 million and $3,46 billion respectively. Aurora is already working towards unveiling driverless commercial trucks by April this year. Last month, Kodiak made its debut autonomous truck delivery to a commercial partner for use in off-road operations.

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The electric vehicle market has become a Tesla vs. Rivian face-off as they’re both prominent players, each with a unique background and vision for the future of electric vehicles.

Tesla was founded in 2003, but its journey kicked off much later in 2008 when it launched Roadster, the first highway-legal electric vehicle to use lithium-ion battery cells. Rivian, on the other hand, was founded in 2009 by RJ Scaringe with a vision to create electric vehicles that cater to outdoor enthusiasts. In 2021, Rivian went public with one of the largest IPOs in U.S. history, reflecting investor confidence in its potential to disrupt the traditional automotive market.

In this competition between Tesla and Rivian for dominance in the EV market, analyzing their market growth will help us understand which brand will lead the charge in 2025.

Tesla vs. Rivian: Production Approach

Tesla has taken an aggressive volume-driven production model with the expansion of its Gigafactories across the globe. The company ensures a standardized manufacturing process to scale up operations and reduce costs. They control everything from battery production to vehicle assembly.

Tesla’s extensive model lineup, including the S, 3, Y, and the newly launched Cybertruck, appeals to various market segments, allowing it to capture a wider audience and drive sales volumes.

Rivian’s production approach is more niche-focused. The company operates mainly in a single manufacturing facility in Normal, Illinois, causing a slower and more deliberate production ramp-up. Rivian produces electric vehicles designed for adventure and utility purposes, such as their all-electric R1T pickup truck and R1S SUV.

In contrast to Tesla, Rivian prioritizes quality and specialized features over volume, positioning itself as a premium alternative in the EV market. The company’s partnership with Amazon in 2020 to deliver 100,000 custom electric delivery vehicles underscores its commitment to specialized solutions.

Financial Performance and Market Valuation: Tesla vs. Rivian

Tesla continues to dominate the EV market, with over 386,800 units sold in the first quarter of 2024, and its stock price currently capped at approximately $410.44 As of Q1 2024, Tesla’s sales figures remain impressive, although they experienced a decline of 8.5% compared to the same quarter last year.

Tesla not only leads in sales but also enjoys remarkable brand loyalty, with nearly 30% of Tesla owners stating they would not consider purchasing an EV from another manufacturer. Current data shows Tesla’s brand loyalty rate at 67.8%, significantly higher than the industry average of 52.5%.

Even though Tesla is more popular than Rivian, China’s EV maker BYD beats Tesla in electric vehicle production. Additionally, geopolitical tensions, including the chip shortage and Red Sea conflicts, have disrupted Tesla’s supply chain, slowing production and reducing vehicle deliveries.

Regardless, Rivian has shown significant growth, with a stock price of around $11.96. The company reported a remarkable 71% increase in sales during Q1 2024 compared to the previous year, delivering approximately 13,588 units.

However, they experienced a loss of $1.46 billion in Q2 2024, primarily due to high cash burn rates as it scales production. To mitigate this loss, Rivian has begun shipping simplified, lower-cost versions of the R1, aiming to reach positive gross profit by the end of 2024, as stated by CEO RJ Scaringe.

Consumer reception remains great for both brands. Recent surveys indicate that Rivian has topped owner satisfaction ratings, achieving scores of 5 out of 5 in Consumer Reports. However, Tesla has faced criticism about build quality and customer service experiences.

Technology Strategies: Tesla vs. Rivian

Tesla is known for its interest in autonomous driving; hence, it is fully invested in software innovation. Its Autopilot system includes features such as adaptive cruise control, automatic emergency braking, lane-keeping assist, and Full Self-Driving (FSD) capabilities. However, there have been incidents of Tesla’s FSD software malfunctioning in Uber and Lyft robotaxis.

Despite these concerns, Tesla’s over-the-air updates and integration of AI, such as the upcoming Grok AI chatbot, position the company as a technology leader.

Similarly, Rivian has its own Advanced Driver Assistance System called Driver+, which supports hands-free driving assistance under specific conditions. While it may not be as advanced as Tesla’s Autopilot, it still provides valuable features such as highway and lane change assists.

While Rivian is expanding its charging network, it is not as extensive as Tesla’s Supercharger network. Rivian recently provided adapters to its existing customers so they can charge with Tesla’s Superchargers. However, only V3 and V4 generations of Tesla Supercharger stations are compatible with a Rivian.

Tesla has also funded battery research projects at Dalhousie University since 2016, and the team there has contributed to at least six Tesla lithium-ion battery patents.

Tesla vs Rivian: Commitment to Sustainability

A key component of Tesla’s approach to sustainability is recycling materials used in battery production. Tesla ensures that 100% of its scraped lithium-ion batteries are recycled, and none end up in landfills.

In its 2023 Impact Report, Tesla outlined a five-step transition plan that includes increasing electric vehicle production, developing renewable energy sources, improving energy efficiency, promoting recycling initiatives, and collaborating with industry leaders to accelerate the transition to sustainable energy. They further reduced their manufacturing carbon footprint by switching to using renewable energy at their Gigafactories.

Rivian, on the other hand, partners with organizations like The Nature Conservancy to support conservation efforts. Rivian’s manufacturing facilities use water recycling systems and energy-efficient lighting to promote sustainable practices.

The company has committed to using renewable energy sources for its operations, including solar power installations, to offset energy consumption. Furthermore, Rivian’s Adventure Network of charging stations is powered entirely by renewable energy.

Future Outlook: Tesla vs. Rivian

Despite recent challenges like growing competition from other automakers like Ford and General Motors, who have increased their EV production, Tesla’s long-term growth remains positive because of its established market position alongside its battery and autonomous driving tech innovation.

Rivian’s future highly depends on its ability to scale production and achieve profitability. The recent investment from Volkswagen, which has a considerable sum of up to $5.8 billion, may provide the necessary capital for growth.

The post Tesla vs. Rivian – Who Dominates the EV Market in 2025? appeared first on Tech Research Online.

According to Automotive Logistics, the car manufacturer also said that it will use the Nvidia Isaac robot platform for the development and deployment of their robots. This collaboration aims to boost Hyundai’s factory automation, combining innovative technology to enhance efficiency and streamline operations.

Hyundai and Nvidia will also be partnering to create virtual simulation environments for the development of safe and reliable autonomous driving technology and robotics systems. Rishi Dhall, the Vice President of automotive at Nvidia said, “Accelerated computing, generative AI, and Omniverse are unlocking a new era of mobility,” said Rishi Dhall, vice-president of automotive at Nvidia. “This partnership will drive the creation of safer, more intelligent vehicles, supercharge manufacturing with greater efficiency and quality, and deploy cutting-edge robotics to help build a smarter, more connected digital workplace.”

Hyundai’s Leap Toward Smart Manufacturing

Though the car manufacturer has been making a constant progression towards an advanced manufacturing system, this partnership is a huge step forward. Hyundai aims to boost factory automation by using Nvidia’s advanced and innovative AI and machine learning platforms. This decision has been made with the Hyundai Motor Company’s long-term vision of adopting Industry 4.0 solutions as a way to adapt to market trends in mind.

The foundation of the partnership is Nvidia’s Omniverse – a real-time simulation and collaboration platform. Hyundai Motor is going to employ this technology to build virtual replicas of its manufacturing plants design the layout of production lines, optimize the processes, and monitor such aspects as probable disruptions, without affecting the production cycle.

The Competitive Edge

While Hyundai is dominant in the auto sector, Nvidia brings unmatched strength in AI and data-driven technologies. The Hyundai-Nvidia partnership will be a harmonious relationship with each firm focusing on its relative strengths to gain a common outcome.

Hyundai and Nvidia may sound like competitors in some technological space, but it’s a beautiful example of how industries can collaborate to drive innovation. For Nvidia, this will be an opportunity to demonstrate their technology capability in one of the high-stakes real-world applications. For Hyundai, it will become an opportunity to consolidate its lead in automated manufacturing.

The Hyundai-Nvidia partnership signifies a growing trend where automakers come together with tech providers to stay ahead of the competition. This partnership is expected to start the trend of similar collaborations across industries for better adaptability of AI in automation.

A Vision for the Future

This is already a possible future as Hyundai is advancing the level of factory automation with the help of cooperation with Nvidia, a tech provider. This partnership not only improves Hyundai’s production capacities but also becomes the pioneer in the creation of new approaches toward improving the industry’s cooperation and using AI and simulation tools.

Their cooperation is evidence that companies of different industries can adopt the role of technology as a way to create operational efficiencies and palpable, sustainable development. Thus, the innovative strategy of Hyundai guarantees that the company continues to be relevant in the context of the constant development of smart manufacturing.

The post Hyundai Partners with Nvidia to Boost Factory Automation appeared first on Tech Research Online.

Long-Term Relationship

This is not the first time that Toyota and Nvidia will be working together. Toyota has used other Nvidia cloud-based systems for a long time. Toyota Research Institute started using Nvidia technology to create, train, and prove its autonomous driving technology in 2019.

Prior to this, the two companies exchanged plans for integrating Nvidia’s supercomputers and operating systems in future Toyota car models. For Nvidia, the latest partnership represents a fresh focus on the automotive sector.

“Toyota is actually a great example of our cloud-to-car strategy. We had already partnered with Toyota in the cloud, and now we’re excited to extend that partnership and work with them in the car,” Nvidia VP for Automotive Ali Kani said.

Toyota AI Integration

Under the new partnership, Toyota’s next-generation vehicles will be powered by Nvidia’s operating systems namely DriveOS and AGX Orin. DriveOS is an autonomous vehicle platform that supports real-time AI processing. It also facilitates AI integration in advanced cockpit and driving features.

Nvidia’s Drive AGX supercomputer will be in-built into Toyota vehicles. The system allows for real-time processing of sensor data. Drive AGX is one of the three computers that constitute Nvidia’s comprehensive self-driving toolkit. The other two supercomputers are Nvidia Omniverse and Nvidia DGX.

Nvidia Omniverse is used for AV software testing and synthetic data generation in simulations. Nvidia DGX is used for AI model training and software stacking.

A Huge Industry

Toyota is not the only automotive company that’s diving into autonomous vehicle technology. During CES 2025, automotive supplier Continental and Aurora unveiled a partnership that will see them deploy autonomous trucks at scale. The driverless trucks will be powered by Nvidia’s Drive Thor system-on-a-chip technology.

Nvidia unveiled a range of new chips and partnerships in autonomous cars, robotics, and agentic AI at the CES 2025 event. CEO Jensen Huang said Nvidia’s DriveOS operating system has the highest standard of functional safety.

“This is going to be a very large industry. I predict that this will likely be the first multi-trillion dollar robotics industry,” Huang said.

Working with Toyota, which is the largest automobile maker in the world, Nvidia expects to grow its automotive vertical business to about $5 billion in 2026. Nvidia also launched Project Digits, a desktop project that connects AI researchers, students, and data scientists to the chip maker’s Grace Blackwell Platform.

According to Huang, this is an AI supercomputer project that runs the entire Nvidia AI stack. Nvidia plans to use it to equip users with hardware that’s designed to run large AI models that laptops cannot handle. The Toyota-Nvidia partnership announcement pushed Toyota stocks up by 4%. Nvidia stock rose by 5% ahead of Huang’s talk at the CES.

The post Toyota Partners with Nvidia to Build Next-Generation Cars with Automated Driving Technology appeared first on Tech Research Online.

Commuter Service

Pony.ai plans to use the Hong Kong International Airport as its launch-pad into the Hong Kong market. The company will start by providing robotaxi services to airport staff at Hong Kong International Airport. The company plans to expand China Pony.ai services to urban areas within the city later.

“Entering the Hong Kong International Airport is the starting point and foundation for entering the entire Hong Kong market, and can further prove the unmanned driving capabilities of driverless vehicles in highly complex environments under the traffic rules of driving on the left,” the company said.

Hong Kong is a critical financial center and Hong Kong International Airport is among the busiest airports in the world. Passenger and cargo volumes are also among the highest in the world. The traffic environment in the city is quite different. Cars drive on the left and it’s common to find special intersection structures with various roads. The city’s traffic network is also dense. Pony.ai did not reveal the timeframe for the launch.

Pony.ai vs Baidu

As Pony.ai launches robotaxi services in Hong Kong, its greatest competitor will be Baidu. The Chinese technology multinational is already working towards introducing Baidu driverless taxis service in Hong Kong having received approval to run trials in North Lantau about two months ago. Pony.ai already acquired licenses in Shanghai, Beijing, Shenshen, and Guangzhou.

The company has already introduced a driverless shuttle service in Beijing’s Daxing Airport. The company has been running autonomous driving trials on the main expressway that connects Guangzhou Baiyun Airport in readiness for future passenger operations. Pony.ai is working to deploy driverless driving in Luxembourg, South Korea, and the Middle East among other countries.

Looking into the Future

Pony.ai is focused on offering cross-city driverless travel services in Hong Kong. In its statement, the company says its autonomous driving demonstration application cars will move freely across several locations in the Guangdong-Hong Kong-Macao Greater Bay Area. This will enable the company to facilitate travel between major hubs like high-speed rail stations and airports. With such a network, Pony.ai will provide Hong Kong residents with convenient, safe, and reliable driverless travel experience.

Pony.ai was founded in 2016 in Silicon Valley. The startup manufactures and operates fleets of autonomous vehicles in China and the US. In November 2024, the company raised $260 million through a US initial public offering, pushing the startup’s valuation to about $4.55 billion. The Pony.ai IPO took place after about two years of uncertainty following the global delisting of another Chinese company, Didi three years ago. The autonomous vehicle company has established research and development centers in Silicon Valley in the US and in Beijing, Guangzhou, and Shanghai in China.

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According to CNBC, the stock price drop appeared to have been triggered by investors who took profits from the EV maker’s strong post-election performance.

Tesla vs Election

Tesla CEO Elon Musk was a key supporter of Donald Trump throughout the 2022 elections. Federal Election Commission filings show that Musk contributed $277 million to the Trump campaign.

Trump’s 2022 election win triggered a sharp rise in Tesla stock prices. This rise was due to increased investor bets that the EV maker would benefit as a result of Musk’s closeness to the newly elected president. Despite the recent Tesla share decline, the stock prices have remained 65% up since November 5, the presidential vote night.

Trump has appointed Musk to co-lead the newly formed Department of Government Efficiency. Trump’s transition team is reportedly planning to introduce a federal law to regulate self-driving vehicles. If this is the case, the regulatory framework will be a major boost for Tesla.

The EV manufacturer is betting its future on the possibility of launching fleets of robotaxis. Musk unveiled its Cybercab self-driving car concept in October 2024 during the WeRobot event.

Challenges with the FSD

Tesla is yet to fulfil the promise of delivering full autonomous vehicles. Its Autopilot, paid Full Self-Driving (FSD) service does not offer autonomous driving. It needs to be complemented by a human to oversee its actions and take over when need arises. Earlier this year, Mark Hawtin of GAM Investment Management said investor expectations of the FSD were likely misled.

“We should say what they’re doing, everyone’s talking about this full self-driving capability. What they’re going to be able to do in China is what they already do in the U.S. or U.K., which is sort of this assisted-driver capability,” Hawtin said.

In October 2024, the US National Highway Traffic Safety Administration (NHTSA) launched investigations on Tesla’s supervised version of Full Self-Driving (FSD) software.Tesla faced NHTSA investigation after a driver, who was using the FSD software, hit and killed a pedestrian. The probe was also triggered by other FSD-related collisions that occurred in low-visibility situations.

Last week, Tesla introduced the Actually Smart Summon (ASS) feature in China. The company took the ASS feature to China after it had introduced it in the US, the Middle East, and European markets. The full self-driving feature allows vehicles to drive autonomously from parking lots to locations within the driver’s vicinity. Tesla’s ASS feature comes with full self-driving and improved autopilot functions.

Tesla Vehicle Recall

Tesla issued a recall notice for close to 700,000 cars in the US on December 20. According to the company, the recall was due to problems with the pressure monitoring system. The EV maker says that tire pressure lights may not be warning drivers of low pressure properly. This could increase the risk of crashes as Tesla owners could drive with tires that are not inflated properly.

This is the 15th recall that Tesla has issued this year. Its largest recall was in July 2024 which affected 1.8 million cars. Over more than 2.7 million Tesla vehicles have been affected by recalls this year.

The US Tesla share price fall and vehicle recall happened at a time when Tesla sales had been declining in Europe. Data from the European Automobile Manufacturers Association showed that the car sales for the EV manufacturer dropped by 40.9% in November alone. This was more than the overall 9.5% drop in battery electric cars sales in the European bloc.

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The full self-driving feature allows vehicles to drive autonomously from parking lots to locations within the driver’s vicinity. Tesla’s ASS feature comes with full self-driving and improved autopilot in the automobile maker.

Software Updates

In a message posted on Weibo, the US electric vehicle manufacturer said the new Tesla Summon feature will be pushed to car owners through software updates. Tesla’s Actually Smart Summon feature in China is part of its Enhanced Autopilot (EAP) and Full Self-Driving software.

This means the feature is not available to people who own the Basic Autopilot (BAP) software, which is free. In China, vehicle owners pay $8,790 to access Tesla’s Full-Self Driving software and about $4,395 for the Enhanced Autopilot software.

Expanding Access

Tesla launched the Actually Smart Summon feature in the US in September 2024. The company expanded its use in Europe and Middle East in November 2024. The company CEO Elon Musk first proposed the feature about two years ago.

Currently, the self-driving software is only available in the Tesla Vision model and does not rely on sensors. In China, most EV models from local car manufacturers are fitted with the Actually Smart Summon feature.

Enticing Buyers

Tesla vehicles are seen to lag behind in their smart cockpit and smart driving technology compared to local Chinese automobile manufacturers. However, this has not affected the popularity of Tesla vehicles in the company.

Tesla has been deliberate in enticing Chinese buyers into getting its self-driving software. The company has offered consumers who buy Tesla cars through trade-in a 90 day free access to the Enhanced Autopilot software.

On November 5, 2023, the electric vehicle manufacturer offered customers who purchase a Tesla vehicle before December 3, 2024 a chance to win visits to its Shanghai factory. To qualify, customers must have made the purchase through trade-ins. Tesla produces Model 3 sedans and Model Y crossover in its Shanghai factory. The factory serves as the company’s export hub, allowing it to deliver orders for both local and international customers.

In November alone, the company sold about 73,490 vehicles in the Chinese market. The China Passenger Car Association reported this as the highest monthly sale for the company in 2024. Tesla’s retail sales for the January – November 2024 period stood at 574,175 vehicles. This was an 8.77% increase from the previous year.

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