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Tesla China Teams With Tencent for Enhanced EV Software Features

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Tencent Cloud will power new in-car features for Tesla China vehicles through a partnership announced Wednesday. The collaboration integrates location data from Tencent’s WeChat messaging platform and adds AI-driven suggestions for drivers, marking the Chinese tech giant’s latest push into automotive software.

The features will debut via over-the-air updates for Tesla’s Model 3 and Model Y in China, then become standard in new vehicles. Tencent Cloud emphasized the rollout targets China’s competitive EV market, where Tesla faces pressure from domestic rivals like BYD and NIO.

Tencent holds a 5% stake in Tesla dating to 2017, when it invested $1.78 billion ahead of the automaker’s China expansion. The partnership deepens ties between Elon Musk’s company and one of China’s most influential tech firms as both vie for dominance in connected vehicle systems.