Tesla's new robotaxi could already be lagging behind the Chinese competition

But Tesla is already lagging behind robotaxi competition, most of which is based in China, one of the U.S. automaker's most important markets. Several Chinese startups and tech companies are already testing fleets of self-driving cars in cities like Guangzhou, Wuhan and Beijing, with the blessing of city governments.

Founded in 2017 and based in Guangzhou, WeRide already has commercial branches in China. Pony.ai, an autonomous vehicle startup whose backers include Toyota, has permits to operate commercial robotaxis in major Chinese cities such as Shanghai and Shenzhen.

Large technology companies are also getting involved. Internet giant Baidu offers fully driverless rides in the cities of Wuhan, Beijing, Chongqing and Shenzhen through its Apollo Go service. The company offers self-driving cars with safety drivers at other locations.

According to Baidu's latest earnings report, the service completed nearly 900,000 rides in the second quarter of 2024, up 26% year over year.

Chinese robotaxi providers are also thinking about bringing their models abroad.

WeRide has had approval to operate its robotaxis in the United Arab Emirates since the beginning of 2023. Last month, the startup announced a partnership with Uber, with the ride-hailing app agreeing to offer WeRide's robotaxis services on its platform. The partnership will start later this year.

The company also has permission to test a robobus in Singapore.

Baidu is in talks with foreign automakers and ride-sharing platforms about bringing its services abroad. Nikkei Asia reports, citing sources familiar with the matter. The Wall Street Journal also reports that Baidu hopes to deploy Apollo Go in Hong Kong, Singapore and the Middle East. Baidu did not immediately respond Fortune's Please comment.

Pony.ai is also reportedly exploring markets in Southeast Asia, Europe and the Middle East to launch its robotaxi services.

Pony.ai already has a memorandum of understanding with ComfortDelGro, a leading transport company in Singapore. Cheng Siak Kian, CEO of ComfortDelGro, said during the signing of the MoU in July that the partnership would allow the two parties to explore large-scale commercial robotaxi operations in China and subsequently in ComfortDelgro's key international markets.

Chinese startups are also testing their robotaxis in the US, particularly in the state of California, which has a special program for companies to test robotaxis on its roads.

California granted WeRide a permit in August that allows its test vehicles to carry passengers with or without a driver for three years. WeRide would not be allowed to offer rides to the general public or charge fees.

Tesla's self-driving car in China

Beijing reportedly gave Tesla preliminary approval to launch its Full Self-Driving assisted driving service in China after Musk made a surprise trip to the country in April.

A few weeks after the visit, state media reported that Musk had asked Beijing to let Tesla test its driver assistance software in its robotaxis, likely in the city of Shanghai, home to one of Tesla's gigafactories.

Tesla has since announced that it plans to launch the fully self-driving vehicle in China in the first quarter of 2025.

The U.S. automaker's sales of Chinese-made electric vehicles rose 19.2% in September compared to the same month last year, according to data from the China Passenger Car Association.

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