March 13 - Tesla (TSLA, Financial) is collaborating with Chinese tech giant Baidu (BIDU, Financial) to enhance its advanced driver-assistance system in China, according to a Reuters report.

Baidu has deployed engineers from its mapping team to Tesla's Beijing office to improve the integration of detailed navigation data, such as lane markings and traffic light signals, with Tesla's Full Self-Driving (FSD) Version 13 software. This initiative aims to address persistent challenges faced on Chinese roads, where data restrictions and local regulatory constraints have hampered system training.

Some Chinese customers have criticized the recent FSD update, claiming it fell short of CEO Elon Musk's promises, intensifying scrutiny as Tesla competes with domestic rivals like BYD and Xpeng.

The improved FSD system could be vital as the company looks to secure its place in China, its second biggest market, in order to rebuild customer confidence in a very intense environment to compete in.

Tesla and Baidu have not responded to requests for comment on the matter yet.