Elon Musk‘s Tesla Inc (NASDAQ:TSLA) has been losing EV market share in China. October 2023 deliveries data showed that its China-made EVs were down 2.6% from September.
On the other hand, it’s Chinese rival BYD Co Ltd‘s (OTCPK:BYDDF) sales were up 5% In October vs. September.
In China, Tesla has been prioritizing sales over profits, in the face of stiff competition. Aggressive discounts have impacted margins.
The CAAM report on the key auto trends in the Chinese market in Q3 of 2023 highlighted that the sector’s focus now appears to be on applications in the fields of AI large-scale language models and smart cockpits.
Domestic players such as GAC, Chery, iFLYTEK, Great Wall Motors are already working on AI large-scale language model platform and smart voice interaction models that can be integrated with a smart cockpit.
The report also shed light on non-Chinese OEMs strengthening R&D in the area.
As announced on X (formerly Twitter) the first product of Musk’s most recent artificial intelligence endeavor, xAI, is called Grok. It is meant to compete with products like Google’s Bard and OpenAI’s ChatGPT.
Per an Electrek report, early beta tester Brian Roemmele disclosed that a "smaller quantized" variant of Grõk will operate "native" in Tesla vehicles, utilizing the vehicles’ onboard computing capabilities.
Musk responded to Roemmele’s post, saying, “Provided our vehicle AI computer is able to run the model, Tesla will probably have the most amount of true usable inference compute on Earth. “
While there is no official timeline for the integration into Tesla vehicles, indications suggest that Grok AI could indeed be a component of the strategy, a move that might enhance the company’s involvement in China’s swiftly evolving automotive market.
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