The deepening partnership with Baidu is occurring against the backdrop of increasing restrictions on data collection and regulation from both Beijing and Washington, which complicates Tesla's implementation of full self-driving systems and FSD in the company's second-largest market.

In the U.S., Tesla's FSD system does not require high precision and up-to-date navigation maps, as local AI training helps the technology better handle driving. Tesla, which plans to fully deploy the FSD system this year, has not commented on this matter, nor has Baidu.

Tesla's shares closed up 7.59% on Wednesday following positive comments from Trump about Musk and his company. The American leader also, as promised, purchased a red Model S.