Tesla is looking for new ways to keep pace in one of the worldâs most competitive automotive markets â China. According to leaked information, the U.S. carmaker has decided to rely on Chinese artificial intelligence models DeepSeek and Doubao from ByteDance to enhance the voice assistant features in its vehicles.
Moving away from Grok, leaning into Chinese solutions
While Tesla uses Grok technology in the U.S., it reportedly plans to adopt local alternatives in China. The reason is clear: domestic competitors like BYD and Geely already offer AI assistants that Chinese drivers have quickly grown accustomed to â with strong government support behind them.
The new voice assistant powered by DeepSeek and Doubao will allow drivers to:
đš control the entertainment system
đš adjust cabin temperature
đš access real-time information via simple voice commands
Internal Tesla documents reveal that Doubao will process most of the commands, while DeepSeek will handle interactive communication with the driver. Both models are hosted on ByteDanceâs Volcano Engine cloud infrastructure.
Tesla under pressure in China
Switching to local AI wasnât an easy decision, but analysts say it was inevitable. If Musk insisted on keeping only U.S.-based solutions, Tesla risked losing even more market share â to Chinese automakers who have already secured such partnerships.
China is a crucial market. Local customers expect technologically advanced cars, and Tesla cannot afford to fall behind. The competition is fierce â earlier this year, BMW announced a partnership with Alibaba to bring its large-language AI model Qwen into upcoming car models designed for the Chinese market.
Uncertainty over integration
It remains unclear whether these AI models have already been integrated into Teslaâs Chinese lineup. Some owners say they havenât been notified of any changes, despite mentions of a new OTA update in Teslaâs official WeChat app on August 18.
Experts point out that Chinese regulatory requirements likely make it difficult for Tesla to roll out Grok in the region. As a result, the company is taking a pragmatic route by adopting local AI to maintain its competitiveness.
Declining deliveries and rising rivalry
Tesla is also facing falling sales in China. Deliveries from its Shanghai factory dropped in six of the first seven months of 2025, with July shipments falling 8.4% year-over-year.
The slump is attributed not only to rising domestic competition but also to Teslaâs lack of government favor. BYD had already posed a major threat, and the pressure grew further when Xiaomi entered the EV industry with several models, including the YU7 SUV, specifically designed to rival Teslaâs Model Y.
To counter this, Tesla is preparing to launch a longer six-seater version of the Model Y in China. But analysts warn that this alone may not be enough to halt Teslaâs declining market share in an increasingly hostile Chinese market.
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