Tesla collaborates with ByteDance and DeepSeek to enhance its AI capabilities in China.

      Tesla intends to introduce a long-wheelbase variant of the Model Y in China, as indicated by the registration documents issued by China’s Ministry of Industry and Information Technology (MIIT) on Wednesday, July 16, 2025. Credit: Tesla

      Tesla has collaborated with ByteDance, the Chinese parent company of TikTok, and the artificial intelligence startup DeepSeek to incorporate their AI models into the new long-wheelbase Model Y. This initiative is aimed at enhancing the voice assistant functionality in the vehicles sold in China.

      Why it matters: It is likely that China’s regulatory requirements prompted Tesla to seek local partnerships for its AI capabilities. AI service providers must comply with algorithm filing and security evaluations, as outlined in the Interim Administrative Measures for Generative Artificial Intelligence Services issued in 2023. Starting in July, Tesla has integrated the Grok chatbot from Elon Musk’s AI company xAI into its vehicles in the U.S.

      According to Bloomberg, Tesla's partnership with ByteDance and DeepSeek for AI model integration may still be in its infancy, as it remains unclear when these models will be utilized in Tesla’s vehicles in China. Additionally, the company did not specify whether it plans to implement similar features in other China-manufactured models, like the Model 3 sedans and Model Y crossovers.

      Details: Tesla is collaborating with ByteDance’s enterprise cloud service, Volcengine, to make large language models, including DeepSeek Chat and ByteDance’s Doubao, accessible to vehicle owners, as stated in a document uploaded on Tesla’s official website in August.

      Doubao will enable drivers to use voice commands for functions such as navigation and music control, while DeepSeek's chatbot will utilize generative AI to engage in conversations with vehicle owners, the document noted. A ByteDance representative confirmed this information to the financial media outlet Caixin.

      Context: Tesla has intensified its efforts to satisfy the increasing demand among Chinese consumers for advanced in-car technology, including enhanced driver assistance and more human-like voice interactions, particularly as its market share in China is declining.

      In July, Tesla held only 4.1% of the passenger car market, a decrease of 1.1% from the previous year, while local electric vehicle competitors like Xiaomi and Xpeng Motors collectively captured 21.4% of the market segment, based on statistics from the China Passenger Car Association.

      International car manufacturers and prominent Chinese auto brands have been quick to adopt AI models from major tech companies such as ByteDance, as well as promising startups. In March, BMW formed a partnership with Alibaba to implement the latter’s QWen large language models in the upcoming Neue Klasse models, which are set for delivery in China in 2026.