What We’re Reading

• Chinese self-driving cars have quietly traveled 1.8 million miles on U.S. roads, collecting detailed data with cameras and lasers (Fortune, July 8, 2024)

  Since 2017, self-driving cars owned by Chinese companies have traveled 1.8 million miles in California alone.  The cars are part of a state program that allows companies who are developing self-driving technology to test on their roadways. The self-driving vehicles are equipped with cameras and LIDAR which map roadways within 2 centimeters of precision.  Many people are concerned about what kind of data is being collected by these Chinese cars and where the data is sent once it is collected, since there is no federal or state oversight.  It is raising security concerns because the data can be used for war strategy and can track movements, such as where individuals go to worship, schools, and other places. 

  Currently there appears to be no government agency that monitors the data that Chinese self-driving cars collect and their national security implications. “The U.S. federal government is just [so] wholly inundated with looking at a raft of other China-related challenges that unfortunately, this particular issue is probably number 18 or 19 on the priority list,” said Singleton from the Foundation for Defense of Democracies.  There is still hope, though.  If the government makes moves now in regulating, they won’t have to play catch up.

• Chinese EVs posing threat to U.S. automakers despite increase in tariffs (CBT News, July 5, 2024)

  Despite the recent announcement from the White House that tariffs on Chinese EVs are increasing from 25% to 100%, Chinese automakers are expected to achieve 33% market share globally by 2030, according to a study from global consulting firm AlixPartners. China has dominated in battery production and the battery supply chain, and Chinese automakers, such as BYD, continue to dominate the global market (see above). AlixPartners has described an “overtime culture” in China that allows for Chinese companies to release new vehicles and products much quicker than many overseas rivals. While the U.S. has imposed tariffs against Chinese EVs, it appears to be only a “short-term band aid” to protect American legacy automakers. China continues to “out-innovate” the U.S. in terms of battery production and technology, and it seems to only be a matter of time before China takes its seat as the global leader in electric vehicles.

• Mercedes Exec Blasts Tesla For Reckless “Full Self-Driving” Rollout (The Byte., July 3, 2024)

  According to Mercedes exec Jochen Haab, Elon Musk’s Tesla has utilized its customers as beta testers for its expensive Full Self-Driving (FSD) software, leading to numerous crashes and fatalities, prompting regulatory investigations. Haab advocates for a cautious, step-by-step approach to build trust in autonomous driving technology. He criticizes Tesla’s aggressive marketing, suggesting it misleads drivers into overestimating the software’s capabilities, thereby increasing road dangers. Haab believes the perceived overpromise and underperformance of Tesla’s FSD have eroded public confidence in self-driving technology. Mercedes contrasts its strategy by limiting beta testing to trained professionals and recently getting approval for its Level 3 autonomous driving system in California and Nevada, which surpasses Tesla’s Level 2 FSD.